25 August 2026
The UK government has announced the first major wave of funding from its £39 billion Social and Affordable Homes Programme, with tens of thousands of new homes set to be built across England.
The announcement includes funding for Greater Manchester, the West Midlands, West Yorkshire, South Yorkshire, North East England and Liverpool City Region, while the Greater London Authority intends to make at least £6 billion available to housing providers in London.
The government says the first wave of funding will support around 70,000 social and affordable homes over the next 10 years, as part of a wider ambition to deliver approximately 300,000 homes through the programme. At least 60% of homes funded under the scheme are intended to be for social rent.
Regional investment
The government’s initial strategic partnership spending outside London includes:
Greater Manchester: £529 million, supporting about 4,400 homes West Midlands: £409 million, supporting about 3,200 homes North East: £445 million, supporting about 3,400 homes West Yorkshire: £441 million, supporting about 4,000 homes Liverpool City Region: £380 million, supporting about 3,100 homes South Yorkshire: £249 million, supporting about 2,200 homes
The government says the investment is designed to help councils and housing providers increase the supply of secure and affordable homes, particularly for families facing long waiting lists or temporary accommodation.
London receives major share
London is set to receive a particularly large allocation because of the capital’s severe shortage of affordable housing.
The Greater London Authority intends to offer at least £6 billion through the programme. More than half of the homes supported by this funding are expected to be delivered by councils.
Housing Secretary Angela Rayner said the programme represents a major expansion of social housebuilding, while the government has highlighted the need to give councils a greater role in constructing homes.
Part of a decade-long housing programme
The £39 billion programme runs from 2026 to 2036 and is intended to deliver around 300,000 social and affordable homes. The government says the programme will prioritise social-rent properties, which are generally cheaper than homes let at market rates.
The announcement comes as housing waiting lists and the use of temporary accommodation remain major challenges across England. The government says the funding marks the beginning of a wider effort to revive council housebuilding and give local leaders more control over housing investment.
However, housing organisations have warned that the scale of the investment will still need to match the enormous demand for affordable homes across the country.
The government says further allocations will follow over the lifetime of the programme, meaning the latest announcement is only the first stage of the £39 billion housing plan.
