Bids to be assessed for value for money ‘based on their particular circumstances’ rather than there being standard grant rates

The upcoming Social and Affordable Homes Programme (SAHP) will not include specific targets for homes other than those for social rent, Homes England’s prospectus for the scheme has revealed.

The guidance for potential bidders, published today, confirmed that the programme would aim to deliver 60% social rent, as previously announced at the spending review.

However, the government has removed specific targets for any other types.

homes england

There will be no specified targets for homes based on geography, type, or construction (e.g. for rural homes, supported housing delivery, or use of modern methods of construction). 

In its summary of the prospectuses, the Ministry for Housing, Communities and Local Government (MHCLG) said it recognised that “some types of homes – such as council homes, supported housing, rural and community-led homes – can sometimes cost more to deliver” and said that grant rates for individual bids could reflect that.

It also stressed that it would welcome bids using modern methods of construction where it is “able to support delivery of the programme’s objectives”.

>> Read more: The Social and Affordable Homes Programme prospectuses: what you need to know

MHCLG said it would “maintain the principle that all bids will be assessed for value for money based on their particular circumstances” and that it would not pay any more grant than necessary to meet the gap between building costs and the funds that can be raised by providers.

“This is why we are not publishing standard grant rates, except in the case of the time limited planning fast track route in London announced on 23 October 2025,” it said.

According to Homes England and GLA prospectuses, bids will be assessed against value for money (using a benefit cost ratio set out in the MHCLG Appraisal Guide), strategic fit, and deliverability.

Homes England will be responsible for the £27.2bn worth of SAHP spending outside London, with the Greater London Authority directing money in the capital. However, within the rest of England, six mayors have been given greater influence over how £7bn of that money will be spent within their areas.

As part of his own prospectus, London’s mayor Sadiq Khan announced that he would be introducing a new key worker living rent product.