Three councils named as Homes England strategic partners

Cambridge, Eastleigh and Newcastle councils named SAHP strategic partners in first for local authorities

Three councils have been named as Homes England strategic partners and handed nearly £400m to build new social and affordable homes.

Eastleigh Borough Council, Newcastle City Council and Cambridge City Council were each named among the 33 strategic partners chosen by Homes England as part of the first wave of funding from the government’s flagship Social and Affordable Homes Programme (SAHP).

The vast majority of the £10bn funding wave will be spent through housing associations and other partners, and the trio of councils have the lowest planned delivery numbers on the list.

However, the allocations are the first time councils have been made strategic partners since they were made eligible for the status in 2021.

The allocations appear to be the first steps towards the “council housebuilding revolution” promised by the new prime minister, Andy Burnham, and his housing secretary Angela Rayner.

The allocations announcement came with a package of support for increasing capacity for councils to bid for funding and build new homes directly.

The Capacity to Build programme has been given an extra £46m to be spent over three years.

The programme has three elements, a council housebuilding support service, a council housebuilding support fund and the pathways to planning graduate scheme.

Kate Henderson, chief executive of the National Housing Federation, which represents housing associations, said the organisation supports councils building their own homes but said it would “take time” to develop their capacity.

“Councils built around 1.3% of new homes over the last 5 years and housing associations built around fifth, so housing associations will be essential partners to the government in the coming years, to enable the scale of social housebuilding that is needed to bring down waiting lists and house families in temporary accommodation,” she said.

“We know that some members will have been disappointed not to have their bids confirmed today. 

“There is an opportunity at the Autumn budget for more money to be brought forward to match the capacity that exists and we will work with our members and the government to realise the potential of any shovel-ready schemes, so local communities can benefit as soon as possible.”