Full housing devolution to metro mayors to take until 2026

Greater Manchester and West Midlands combined authorities will have to wait until 2026 to take fuller control of affordable housing funding budgets, under devolution deals announced yesterday.

The Budget yesterday announced so called ‘trailblazer’ devolution deals for the two areas, giving them greater control over several areas, including housing grant.

The Department for Levelling Up, Housing and Communities (DLUHC) yesterday published more detail of the two deals, which the government hopes will be replicated elsewhere.

Both combined authorities will receive powers in a two-staged approach, initially taking partial powers to ensure the current 2021-26 affordable homes programme, which is overseen by Homes England can be delivered.

They would then gain more powers in any new AHP funding round after 2026, although Homes England will still play a role in administering the programme, unlike in London.

In the initial phase of the deal before 2026, the authorities will set the “strategic direction” of the affordable homes programme (AHP) in its area.

However, they will still have to work with Homes England to identify schemes. Where Homes England proposes decisions that the authorities think are inconsistent with their strategy, the authorities will “have the right to challenge and escalate” the decision to DLUHC, who will make the final decision. Overall funding decisions must also still meet national targets.

After 2026, GMCA will be able to direct Homes England to identify and bring forward sites for housing and to partner with providers. GMCA will set standards to meet its priorities and approve funding allocations.

Unlike in London, Homes England will still administer the programme in the area in partnership with GMCA and will report to GMCA and provide expertise. GMCA will be held to account for delivery.

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The West Midlands deal after 2026 is similar, with the combined authority taking responsibility for decisions currently taken by Homes England, such as agreeing sites, and identifying standards.

The WMCA will be held accountable for delivery but day to day administration of the programme will continue to be undertaken by Homes England working to the WMCA’s strategy.

The second phase of devolution is likely to be piloted in the 2021-26 programme.

The DLUHC document says the development of the more flexible devolution approach “will consider how to maintain the benefits of nation-wide competitive bidding and long-term contracting with national housing providers, alongside those arising from greater local control and place-led strategic delivery, innovation and objectives for some areas.”