Local authorities across England are set to receive a major funding boost aimed at increasing affordable housing delivery, with the government announcing an additional £21.8 million for the Council Housebuilding Support Fund.
The revenue funding, available until March 2029, is designed to help councils strengthen their capacity to develop ambitious housing projects and prepare successful bids for the Social and Affordable Homes Programme.
The move comes as ministers seek to place councils at the heart of efforts to tackle the housing shortage and deliver more social and affordable homes across the country.
The funding will enable councils to invest in the expertise, resources and partnerships needed to move housing schemes from concept to delivery.
Housing Secretary Angela Rayner said:
“Councils will be at the heart of the biggest housebuilding revival in decades, but we know many lack the capacity and expertise to turn plans into reality.
“This funding will help councils build the skills, capacity and partnerships needed to make the most of our historic £39 billion investment.
“By putting councils back in the driving seat, we’re helping more families find a safe, secure place they can call home.”
Local authorities can apply for support in five key areas:
- Knowledge and skills development
- Housing pipeline development
- Pre-development and enabling activities
- Partnership working
- Additional staffing capacity
Funding Window Opens This Month
Applications for the latest funding round open on 21 September and close on 2 November. Successful councils will be notified from December 2026.
The government has also confirmed further bidding rounds will take place in April 2027 and 2028, allowing more authorities to access support over the coming years.
By providing funding at an early stage, ministers hope councils will be able to identify and unlock additional housing opportunities, increase the delivery of social rent properties and better meet local housing needs.
Part of Wider Capacity to Build Programme
The £21.8 million investment forms part of the government's wider £46 million Capacity to Build package, announced in August 2026.
Alongside the CHSF, the programme includes:
- Council Housebuilding Support Services delivered through the Local Government Association, providing free assessments and tailored support for councils.
- Pathways into Planning, a national initiative intended to bring 150 new graduate planners into local government between 2026 and 2029.
The latest funding builds on the success of the first CHSF round launched in 2025.
Unlocking Future Housing Growth
Government estimates suggest the CHSF will help around 75 councils submit capital funding bids through the Social and Affordable Homes Programme.
Authorities can also access additional finance through existing mechanisms, including Right to Buy receipts, Housing Revenue Accounts and discounted borrowing through the Public Works Loan Board.
Meanwhile, regional delivery teams from Homes England will continue working with councils to provide technical, strategic and practical support for new housing developments.
The announcement underlines the government's ambition to increase affordable housing supply while giving local authorities a greater role in shaping and delivering housing growth in their communities.
Image credit: iStock
