Funding aims to deliver over 70,000 new social and affordable homes across England
Category: Politics
On a bright August day, the streets of Manchester buzzed with the chatter of families and children, many of whom were grappling with the harsh realities of temporary housing. This is a scene that resonates across England, where the housing crisis has left countless families in precarious situations, often waiting years for a permanent home. Against this backdrop, the government recently announced a major investment aimed at addressing these urgent needs.
On August 25, 2026, Prime Minister Andy Burnham and Housing Secretary Angela Rayner unveiled plans for an initial £10 billion tranche from the record £39 billion Social and Affordable Homes Programme. This funding is expected to support the construction of over 70,000 new homes across England, a much-needed boost in a country where nearly 180,000 children are currently growing up without a permanent home.
This announcement signifies a notable shift in housing policy, as it places local councils back at the forefront of large-scale housebuilding. Previously, Burnham had called for the entirety of the £39 billion budget to be dedicated solely to social housing, which is more heavily subsidized and typically more affordable than other types of housing. He stated, "There’s £39bn allocated over a 10-year period … I’m saying that should be dedicated to council homes. Let’s not be coy any more … I’m saying council homes because control matters." Yet, the recent plan allocates about 60% of the new homes to social rent, which is still a positive step but reflects a compromise from his earlier stance.
The funding will be distributed among 33 Strategic Partners, including local authorities, housing associations, and other providers. This collaboration aims to accelerate the delivery of social and affordable housing at scale. According to government figures, around 60% of the homes delivered through these partnerships are expected to be for social rent, widely regarded as the most affordable form of rented housing.
This funding comes at a time when the demand for housing is rising sharply. Families living in temporary accommodation and those on long waiting lists for social housing are set to benefit directly from this investment. Rayner emphasized the importance of secure housing, stating, "Families can’t be left raising children without a place to call home, and none of us should spend years waiting for somewhere safe and affordable to live." She added, "I know how important fixing this is – because I’ve been there. A safe and secure home was the foundation for a besser life - I couldn’t have got to where I am today without it."
The government has also indicated that over £2 billion of the newly announced funding will be directed toward mayoral authority areas outside London, reinforcing its commitment to local decision-making and investment. This approach aims to empower local leaders to address housing priorities in their communities effectively.
Even with this substantial funding, experts and housing charities have voiced concerns that it may not be enough to meet the overwhelming demand. The National Housing Federation and various homeless charities have previously indicated that at least 90,000 social homes need to be built annually to tackle the existing backlog and end homelessness. Charlie Berry, policy manager at Shelter, remarked that the announcement is "not near the level we need to truly tackle that backlog and end homelessness," but acknowledged it as a "significant improvement."
One of the key challenges remains the underlying obstacles that prevent councils from building at scale. Sarah Elliott, chief executive of the charity Shelter, noted, "Today’s announcement puts councils back on the pitch in the fight to end homelessness. But there are still underlying obstacles which hold councils back from building. The government must use the autumn budget to finally remove these barriers, like unsustainable housing debt that councils are saddled with, to make the prime minister’s vision of a new generation of social homes a reality."
The recent funding announcement is just the first phase of a ten-year program aimed at delivering a total of 300,000 social and affordable homes. Ministers have confirmed that more than £16 billion remains available for allocation outside London, with future funding rounds expected to prioritize social rent homes and council-led housing developments.
Burnham expressed his determination to see councils take a central role in resolving the housing crisis, stating, "Councils built this country out of a housing crisis once before. Backed properly, and trusted to get on with it, they will do it again." This sentiment echoes a broader recognition of the need to reinvigorate local authority involvement in housing development, a shift that many believe is fundamental to turning the housing crisis around.
As the government pushes forward with this ambitious agenda, the collaboration between local authorities and housing associations will be key to meeting the targets set forth. The announcement has been met with cautious optimism, but the path ahead is fraught with challenges that require sustained effort and commitment from all stakeholders involved.
In the coming months, as the government continues to roll out this ambitious housing program, attention will turn to how effectively these funds are utilized and whether they can truly make a difference for families in need of secure homes. The success of this initiative could mark a turning point in the fight against homelessness and inadequate housing across England.