Affordable Homes Programme funding opened up to regeneration as part of Homes England shift

Commenting on the change, Peter Denton, chief executive of Homes England, said: “The affordable housing sector has always had to balance the investment it makes in existing homes with the investment it makes in building new homes. Over the past year, increasing financial pressures have made achieving that balance even more difficult to manage.

“This change is something the sector has been calling for, and with it there is a real opportunity to accelerate the regeneration of social housing and help level up communities across the country.”

Mr Denton said the agency would work quickly to make the funding available to ensure partners get the maximum benefit of the change, and was ready to use the “tools, capacity and capability” it has available to support delivery.  

He said: “We encourage all affordable housing providers and local authorities to come and talk to us as early as possible if they need support to develop their proposals – we’re here to help.”

Housing minister Rachel Maclean said: “We remain committed to building the affordable homes this country needs and a key part of this is improving the quality and supply of social housing.  

“The changes I am announcing today will unlock more affordable housing by ensuring we replace old homes with ones that are fit for the future. This is absolutely critical in helping us regenerate communities, speed up housing delivery and provide high-quality homes for more families.”

Social Housing has asked Homes England about the level of additionality required in order for regeneration schemes to qualify, and for confirmation that the funding applies to grant in the programme delivered through the Greater London Authority. 

Sector reaction to the changes has been positive, with Kate Henderson, chief executive of the National Housing Federation (NHF) describing the announcement as “hugely welcome”.

Meanwhile, James Prestwich, director of policy and external affairs for the Chartered Institute of Housing (CIH), told Social Housing the “very welcome news” was something the trade body had been calling for. 

“The regeneration of existing homes and communities has a key role to play, alongside the delivery of much-needed new social homes,” he said.

The announcement has also been received warmly by speakers at the Housing 2023 conference in Manchester, although some delegates privately expressed doubts about how many schemes would be able to benefit given the late hour of the amendment within the timeframes of the current AHP.

Speaking on a session at the conference’s keynote stage on 27 June, Greg Reed, chief executive of Places for People, said the change would enable more affordable homes to be built on schemes where the numbers previously had not added up. He referred to Park Hill in Sheffield, a partnership between the group and developer Urban Splash, as one such scheme where more homes could be introduced in subsequent phases.

Matt Cooper, tax and treasury director at Places for People, recently told Social Housing that the association was keen to “keep delivering new homes”, despite others pulling back amid the current financial challenges.

Review of Homes England

News regarding the AHP funding changes came a day after government announced that Homes England would be one of 40 of its agencies to be selected for a “routine review”.

The assessment, launched on 26 June as part of the Cabinet Office’s Public Bodies Review Programme, will be led by Tony Poulter, currently a non-executive member of the Department for Transport board.

Mr Poulter will speak to stakeholders including developers, government and councils, as part of a process to ascertain whether the agency is “delivering for the taxpayer”. He will consider Homes England’s structure, compliance and outcomes for stakeholders and customers, and report back to the housing minister.

The review will also take in how the Department for Levelling Up, Housing and Communities works with Homes England.