Objectives of Fund
Affordable housing is housing for sale or rent for those whose needs are not met by the market. The provision of affordable housing is an element of the Government’s plan to end the housing crisis, tackle homelessness and provide aspiring homeowners with a step onto the housing ladder.
The Affordable Homes Programme provides grant funding to support the capital costs of developing affordable housing for rent or sale. As the Government’s housing accelerator, Homes England will be making available £7.39 billion from April 2021 to deliver up to 130,000 affordable homes by March 2026 – outside of London. Partners looking to develop affordable housing in London can find more information on the Greater London Authority’s website.
The funding is for the supply of new build affordable housing and supports the development of:
Supported Housing (10% of homes delivered) - any housing scheme where accommodation is provided alongside care, support or supervision to help people live as independently as possible in the community.
Rural Housing (10% of homes delivered) - housing delivered in settlements with a population fewer than 3,000.
Traveller pitches - funding to develop new sites and to add new pitches onto existing sites, to help meet the accommodation needs of traveller communities.
Empty homes - affordable homes can also be created by bringing existing empty homes back into use.
The majority of rented homes built using the AHP will have the Right to Shared Ownership attached.
The programme will have an overall budget of £11.5 billion. Nearly £7.5 billion will be delivered outside London by Homes England, the government’s housing accelerator. The Greater London Authority has been offered £4 billion and negotiations about what they will deliver with this funding are in progress.
There are two routes to access funding:
CME provides access to grant throughout the duration of the programme, while funding remains available. This route allows providers to apply for funding for individual schemes. All schemes funded through CME must have started on site by 30 September 2025 and be completed by 31 March 2026.
Who Can Apply
Councils, housing associations and private providers from England (outside London) can start preparing their bids. The scheme will open by the end of 2020.
Homes England welcomes proposals from existing and new partners – housing associations, local authorities, developers, for-profit providers, community-led organisations and others who have an ambition to develop affordable homes. Applicants can apply for funding as an individual organisation or as part of a partnership or consortium.
To receive grant funding, the applicant will need to be a qualified Investment Partner of Homes England or be working with an organisation that is. In a consortium, only the lead organisation needs Investment Partner status, unless other partners also intend to apply for funding on their own. Investment Partner status confirms that organisations have the financial and technical capacity to deliver their proposed scheme, and that they have financial and legal good standing.
England, outside of London.
This funding does not provide grant for:
Regeneration – the replacement of homes demolished through regeneration work is not eligible for funding.
Section 106 - the purchase of homes built under Section 106 agreements, where the affordable homes are secured through developer contributions is not funded.
Major Repairs – works to ensure homes are habitable are not eligible for funding as this is the responsibility of the provider.
How To Apply
A stakeholder engagement process runs from September to November 2020.
It is anticipated that continuous market engagement (CME) applications will be invited before the end of 2020 and strategic partnership proposals by the start of 2021.
The timetable will be updated with more detailed information as and when it becomes available.
Applications through CME will stay open while funding remains available. These applications are assessed on their individual merits.
Further advice and assistance with submitting an application may be sought directly from Homes England.
Useful documents & links
Addresses and contacts
For further information on how to obtain this grant locally, please contact the following:
2 Marsham Street
Tel: 0300 1234 500
Fax: 0300 1234 500
Email: [email protected]