Affordable Housing: Finance
The question
To ask the Secretary of State for Housing, Communities and Local Government, what criteria her Department plans to use to determine how additional funding for the Affordable Homes Programme will be distributed.
Answered by Matthew Pennycook
The government is committed to delivering the biggest increase in social and affordable housebuilding in a generation.
At the Budget on 30 October 2024, the Chancellor set out details of an immediate one-year cash injection of £500 million to top up the existing Affordable Homes Programme which will deliver up to 5,000 new social and affordable homes.
On 12 February 2025, the government announced a further cash injection of £300 million to the existing Affordable Homes Programme which will deliver up to 2,800 new homes, with more than half being Social Rent homes.
In awarding contracts under the programme, Homes England and the GLA respectively assess the need for grant on a site-by-site basis. In agreeing how much grant a project requires they will take into account the costs for building out the site with how much grant is needed to make that project viable, and the overall value for money for the programme.
More details of the bidding process and criteria can be found on gov.uk here for London and on gov.uk here for projects outside London.
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