Families living in temporary accommodation and those facing long waits for social housing are set to benefit from a major government housing investment, with ministers announcing the first £10 billion tranche of funding from the record £39 billion Social and Affordable Homes Programme.
The funding package, announced today (25 August) by the Prime Minister and Deputy Prime Minister and Housing Secretary Angela Rayner, is expected to support the delivery of more than 70,000 new homes across England.
A total of 33 Strategic Partners, including local authorities, housing associations and other housing providers, will receive long-term funding allocations designed to accelerate the delivery of social and affordable housing at scale.
The announcement represents a significant shift in housing policy, placing councils back at the centre of large-scale housebuilding. Local authorities will join housing associations as Strategic Partners with Homes England, providing greater certainty over future investment and reinforcing the role of councils in addressing housing need within their communities.
Government figures indicate that 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. The move is intended to help more households access secure, long-term accommodation while reducing pressure on local authority housing waiting lists.
The investment comes against the backdrop of rising housing demand, with almost 180,000 children currently growing up without a permanent home.
Prime Minister Andy Burnham said:
“No child should be raised in a hostel room and no family should wait ten years for a front door of their own. I have said from my first day in this job that everything starts with a good home.
“Nearly £10 billion will go to councils and housing associations to build genuinely affordable homes, most of them for social rent, in the places where families are waiting longest.
“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.”
Deputy Prime Minister and Housing Secretary Angela Rayner highlighted both the social and economic importance of increasing housing supply. She said:
“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.
“I know how important fixing this is – because I’ve been there. A safe and secure home was the foundation for a better life - I couldn’t have got to where I have today without it.
“That’s why the Prime Minister and I are doing everything we can to get councils building once again – it’s fundamental to turning the housing crisis around, helping families out of temporary accommodation and into a secure home.”
More than £2 billion of the newly announced funding is expected to be invested in mayoral authority areas outside London.
The government said the move forms part of its wider devolution agenda, giving Established Mayoral Strategic Authorities greater influence over housing priorities and investment decisions. Ministers expect more funding to be directed to mayoral authorities over time as the programme develops, reducing reliance on Whitehall-led decision-making.
The current allocation represents only the first phase of the ten-year programme. More than £16 billion of funding remains available outside London, with ministers indicating future allocations will prioritise Social Rent homes and council-led housing developments.
If delivered as planned, the programme could support the largest expansion of council housing seen in decades.
Alongside direct capital investment, ministers have announced measures aimed at strengthening councils' ability to deliver ambitious housing programmes.
The package includes:
- Greater access to funding available through the Social and Affordable Homes Programme.
- Increased flexibility in the use of Right to Buy receipts.
- A further £46 million investment over the next three years to build local authority housing expertise and delivery capacity.
The government noted that councils generated £1.61 billion from Right to Buy sales during the last financial year, funds that ministers want local authorities to use more effectively to support new housing developments.
London is also expected to receive a significant share of housing investment, reflecting ongoing affordability pressures across the capital.
The Greater London Authority intends to make at least £6 billion available through the programme. Councils are expected to deliver more than half of the homes funded through the scheme in London, further strengthening the role of local government in housing delivery.
Ministers pointed to London's existing devolved housing powers as an example of how local leadership can accelerate housing delivery and improve investment outcomes.
While councils are being given a larger role, housing associations and other registered providers will remain key partners in delivering social and affordable homes.
The government said collaboration between local authorities and housing providers will be essential if it is to meet its target of delivering 1.5 million homes during this Parliament, including what ministers describe as the biggest expansion of council, social and affordable housing in a generation.
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