CEO ‘incredibly disappointed’ not to be named as strategic partner and calls for boost to CME funding

Sovereign Network Group (SNG) was told that the “value for money” of its development proposals was the reason it was not picked for the first wave of Social and Affordable Homes Programme (SAHP) allocations.

The 86,000-home provider was one of the larger organisations not to be named as one of Homes England’s 33 strategic partners, to whom almost £10bn of SAHP grant funding was awarded in August. 

Mark Washer Head Shot edit

Mark Washer, chief executive of SNG

Speaking to Housing Today at the Labour Party conference earlier this week, SNG’s chief executive, Mark Washer, said it was “incredibly disappointing that we aren’t a strategic partner” but that the organisation had “just got to move on”. 

“We were told [the reason was] value for money,” he said.

“If I look at the quality of our homes and our home and place standard I think that probably does lead to increases in costs. 

“The main thing now is that we still have the third largest pipeline over the next five years in the sector. 

“It’s important for us that we continue to deliver that. We will engage with Homes England and Ministry of Housing, Communities and Local Government (MHCLG)on how SNG can continue to play a major part.”

Earlier in the conference, Washer shared a panel with Matthew Pennycook, during which the housing minister said that “people with really good bids lost out”.

“Mark’s heard this before, but [it was] so massively oversubscribed in terms of the amount that’s available and on the profile that’s made, which is a great thing,” Pennycook said.

Speaking to Housing Today, Washer said it was now “really key” for the government to direct more money to Homes England’s continuous market engagement, which allows providers to apply for grant on a scheme-by-scheme basis.

“Although that £39bn is great, that first wave allocation wasn’t perhaps where many were hoping it would be,” he said. 

“That means associations are looking at sites that are currently sitting in suspended animation. We really, really want to move those forward.”