Update from MHCLG on targets on the 2021-26 Affordable Homes Programme
Published 30 July 2024
Applies to England
© Crown copyright 2024
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In 2023, the Department undertook a review of commitments on the 2021-26 Affordable Homes Programme (AHP) and revised its targets. This paper sets out the revised overall targets that the programme is currently working to.
In 2020, the government of the day announced that the AHP for 2021-26 would achieve ‘up to 180,000 homes, should economic conditions allow’. In September 2022 the National Audit Office’s report on the AHP since 2015 noted that the targets that the government set its delivery agencies totalled 157,000 homes at the time of launch.
In early 2023 the government asked Homes England and the Greater London Authority (GLA) to carry out a renegotiation exercise, allowing AHP contractors (housing associations and local authorities) to submit revised bids, to take account of higher than expected increases in constructions costs and other pressures on social landlords’ financial position since contracts had been signed, including interest rates and the cap on rent rises in social housing in 2023-24. Providers were also asked to increase the proportion of social rent homes.
Revised targets were agreed with the GLA and Homes England following this renegotiation, reflecting the sum of these individual contracts, and forecasts on future delivery through contracts still to be awarded. They were as follows:
The 2021-26 AHP is expected to deliver 110,000 – 130,000 affordable homes, with:
a. At least 40,000 social rent homes
b. 44,000 – 56,000 affordable homes for ownership
c. 5% of delivery for supported housing
d. 5% – 10% of Homes England delivery for rural housing