The Government has unveiled the first £9.58 billion wave of funding from its Social and Affordable Homes Programme, with 33 strategic partners expected to deliver 73,600 homes over the next decade.
Nearly two-thirds of the homes supported through the initial allocations are expected to be for social rent, as Prime Minister Andy Burnham promises to revive large-scale council and social housebuilding.
However, the first funding round is set to place substantial reliance on housing associations, prompting scrutiny over how quickly Burnham can deliver his ambition for councils themselves to return to building homes at scale.
£9.58bn allocated to 33 strategic partners
The Government said £9.58 billion has been allocated to 33 strategic partners outside London through the Social and Affordable Homes Programme.
The funding is expected to support 73,600 new homes over the ten-year programme, with almost two-thirds intended for social rent.
More than £2 billion is expected to be invested in mayoral areas outside London, while the Greater London Authority intends to offer at least £6 billion through the programme for housing in the capital.
The Government says more than £16 billion of programme funding remains to be allocated outside London.
Burnham promises return to council housebuilding
Burnham has presented the programme as part of a wider effort to restore social and council housebuilding to levels not seen for decades.
The Prime Minister has argued that councils should once again be able to build homes at scale, with the Government seeking to increase the supply of properties available at social rents.
The programme represents a substantial long-term funding commitment, but the first allocations also illustrate the challenge of translating that political ambition into a rapid expansion of direct council housebuilding.
First wave relies heavily on housing associations
The Financial Times reported that much of the first tranche is being allocated through housing associations and that the arrangements substantially build on work developed under the previous government led by Keir Starmer.
Housing associations have long played a major role in delivering affordable and social housing, meaning their involvement does not prevent the programme from increasing the overall supply of social homes.
But the distinction matters politically because Burnham has placed particular emphasis on restoring councils as significant housebuilders in their own right.
Conservatives question timing of spending
Shadow housing secretary James Cleverly has criticised the programme, arguing that much of the spending has been pushed into later years and beyond the current Parliament.
The Conservatives say that means the Government will not have to fund a large proportion of the commitment during this parliamentary term.
That is an opposition criticism rather than an independent finding. The Government's confirmed position is that the Social and Affordable Homes Programme is designed as a ten-year funding settlement, with further allocations still to be made.
Nearly two-thirds expected to be for social rent
The proportion of homes expected to be available for social rent is a significant element of the announcement.
The Government argues that increasing supply will help tackle housing waiting lists and provide greater certainty to councils, housing associations and developers planning long-term projects.
Long-term programme faces delivery test
The £9.58 billion allocation is the first major funding wave rather than the entirety of the Government's housing programme.
Its success will ultimately depend on how many homes are completed, how quickly they are delivered and what proportion of future construction is undertaken directly by councils rather than other social housing providers.
For Burnham, the announcement provides substantial funding behind his promise to increase social housebuilding, while also creating an early benchmark against which his more specific pledge to restore large-scale council housebuilding can be judged.