Social and Affordable Homes Programme (SAHP) 2026 to 2036
Information for housing providers about funding for development of affordable housing through the Social and Affordable Homes Programme (SAHP) 2026 to 2036.
Applies to England
What the funding is for
The Social and Affordable Homes Programme 2026 to 2036 (SAHP) provides grant funding to support the capital costs of developing affordable housing in England (outside London).
Affordable housing is defined as ‘housing for sale or rent for those whose needs are not met by the market’ in the National Planning Policy Framework.
Homes England has at least £27.3 billion of government funding — including £1.2 billion in bridge funding announced in March 2025 — to deliver new social and affordable homes outside of London. We will work closely with a diverse range of partners — both existing and those we haven’t previously worked with — to maximise the impact of this funding.
Funding for affordable housing in London
If you want funding to develop affordable housing in London, apply through the Greater London Authority.
Funding priorities
There are national and regional strategic priorities for SAHP funding.
National strategic priorities
The funding has 2 national strategic priorities. These are to maximise the delivery of:
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social and affordable homes, supporting the government’s commitment to delivering 1.5 million homes in this parliament
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homes for Social Rent, with at least 60% of the total homes to be delivered as this tenure
SAHP also seeks to support an increase in:
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council housebuilding — directly from councils or in partnership with registered providers or developers
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the delivery of specialist and supported housing
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the delivery of community-led and rural housing
Partners will be expected to demonstrate how their bids will contribute to these priorities.
Regional strategic priorities
Established Mayoral Strategic Authorities (EMSA) can set the strategic direction of the SAHP in their areas. This includes shaping the tenure mix and identifying priority sites for social and affordable housing development.
There are currently 6 EMSAs this applies to:
- Greater Manchester Combined Authority (GMCA)
- Liverpool City Region Combined Authority (LCRCA)
- North East Combined Authority (NECA)
- South Yorkshire Mayoral Combined Authority (SYMCA)
- West Midlands Combined Authority (WMCA)
- West Yorkshire Combined Authority (WYCA)
This funding guidance includes information provided by EMSAs setting out their overall ambitions for the delivery of new social and affordable homes in their area. Partners using grant funding to support social and affordable housing delivery in EMSA areas will be expected to demonstrate how they are meeting the relevant EMSA priorities, alongside national priorities. The information provided as part of any bid and as part of ongoing monitoring of delivery will be shared with the relevant EMSA.
Homes England will continue to be responsible for taking final funding and contractual decisions, in line with the national strategic priorities and assessment criteria described elsewhere in this guidance but will work closely with EMSAs via Strategic Place Partnerships to support delivery of their priorities. There is no expectation that the SAHP will be able to support the delivery of all EMSA ambitions.
We will also expect partners to demonstrate how local housing need, at a local authority-level, is being addressed. Homes England’s regional teams will provide support to partners to ensure that funding aligns with specific regional and local priorities.
What the funding can be used to deliver
SAHP funding is primarily available for the supply of new-build affordable housing. It supports the delivery of:
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general needs homes for rent
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general needs homes for ownership
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specialist and supported housing for older, disabled or vulnerable people
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homes in rural areas
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repurposing empty homes
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traveller pitches
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community-led housing
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regeneration of existing housing estates
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acquisition of market homes for use as affordable housing
The Capital Funding Guide provide more detailed rules and guidance on each tenure and type of social and affordable housing.
Homes for rent
SAHP funding supports the supply of homes for:
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Social Rent — where the rent is based on a government formula based on a combination of local incomes and local property values
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Affordable Rent — where the rent can be set at up to 80% of the current market rate (inclusive of service charges)
Social Rent is usually a lower rent level than Affordable Rent. For more information on setting Social Rent and Affordable Rent levels, read the government’s policy on rents for social housing.
Social Rent is a key priority for this programme and it is expected that at least 60% of all homes funded through SAHP will be for Social Rent.
Registered providers will be expected to work closely with and assist councils to fulfil their duties to meet local housing need. This includes letting rented homes in accordance with, and meeting obligations set out in, nominations agreements. We expect registered providers to provide 100% of first lets through nominations agreements, unless otherwise agreed with the council.
The Right to Shared Ownership will not apply to rented homes delivered with SAHP funding.
Homes for ownership
SAHP funding supports the supply of homes for the following routes into home ownership:
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Shared Ownership — which allows people to buy a share of a home and pay rent on the remaining share
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Home Ownership for People with Long-Term Disabilities (HOLD) — a type of Shared Ownership which helps people with a long-term disability buy a home that meets their specific needs
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Older Persons Shared Ownership (OPSO) — a type of Shared Ownership which is available to people aged 55 or over, often with specific design features. Ownership is capped at 75% and, once this is reached, no rent is payable on the remaining share
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Rent to Buy — where the rent is capped at 80% of the current market rate (inclusive of service charges) and homes are let to working households, so they can save for a deposit to buy their first home
We will introduce measures to improve fairness and transparency for shared owners.
Partners must:
- consider the affordability of service charges when designing Shared Ownership homes
- ensure fees for shared owners are fair, proportionate, and reflective of costs and that they do not generate profit or cross-subsidise other delivery
- publish post sales and leaseholder fees in a clear and accessible way and we will provide more on how to do this
- make it clear to customers where fees are optional and allow customers to opt out of these
Specialist and supported housing
SAHP funding supports the supply of specialist and supported housing for older, disabled, and vulnerable people. This is housing which is purpose designed or designated to meet the needs of a particular group. It includes housing where accommodation is provided alongside care, support or supervision (or access to these services where needed) to help people to live as independently as possible.
For SAHP, specialist and supported housing is categorised into 3 needs groups:
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older people — older people with or without support or care needs
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working age disabled people — people with a physical or mental impairment with substantial or long-term support or care needs in line with the Equality Act 2010 definition of disability
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people with transitional support needs — people in crisis or with temporary support needs
The specialist and supported housing types funded by SAHP are:
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extra care or housing with care — purpose-built or adapted self-contained supported housing for older people or working age disabled people in a scheme with on-site care and support services for assisted living
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accessible or adapted homes — long-term, self-contained housing for older people or working age disabled people purpose-designed or adapted for accessibility, and with access to support
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retirement living or sheltered housing — self-contained, purpose-designed or adapted housing for older people in a scheme with some support services
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designated housing for older people — self-contained homes with no special design features or additional facilities but which provide accommodation designated for older people, with a process to enable residents to access support services
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purpose-designed supported living — long-term supported housing with care and support for working age disabled people purpose designed or adapted for this purpose
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designated supported living — long-term supported housing with care and support which is designated for working age people but has no additional design features
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purpose-designed accommodation-based supported housing — purpose-designed or adapted housing packaged with support services for people with transitional support needs
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designated accommodation-based supported housing — housing packaged with support services which is designated for people with transitional support needs but has no additional design features
SAHP encourages innovation and we welcome approaches to increasing the supply of social and affordable homes for these groups which reflect best practice and good design. This may include, but is not limited to:
- schemes which provide intergenerational living in mixed communities
- dementia-friendly or inclusive design
- faith-based or culture-sensitive homes
When developing proposals for schemes which include a care or support element we encourage early engagement with relevant local health and adult social care commissioners (including Integrated Care Boards (ICBs)).
Unless otherwise stated, specialist and supported housing schemes funded through SAHP must meet the overall programme requirements and be for affordable housing tenures.
Other types of housing
SAHP funding also supports the development of:
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rural housing — any social and affordable housing delivered in settlements with a population of less than 3,000
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traveller pitches — where new sites, or additional pitches on existing sites, are delivered to help meet the accommodation needs of Traveller communities
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empty homes — where homes brought back into use as social and affordable housing, either through purchase and repair or lease and repair
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community-led housing — housing delivered by or on behalf of communities or groups for local people
Regeneration of existing social housing estates
SAHP funding can be used to support the regeneration of existing social housing estates and support the delivery of replacement social and affordable homes, where this will unlock the delivery of additional social and affordable homes.
Additionality can be demonstrated in a number of ways including, but not limited to, additional social and affordable homes:
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within the existing site boundary — for example, via densification
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across a portfolio of sites
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on adjacent land being brought back into use
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on new sites as a result of unlocked business plan capacity
It can also be demonstrated by:
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additional bed spaces — for example, replacing 1-bed flats with family houses
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replacement of social and affordable homes or traveller pitches that are no longer fit-for-purpose, meet the needs of the intended client group (in the case of specialist and supported housing), or otherwise in use as social or affordable housing
Proposals to deliver replacement social and affordable homes will need to:
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provide net additional social and affordable homes alongside replacement social and affordable homes
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start on site by 31 March 2036
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complete by the relevant contractual completion date
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represent good value for money
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demonstrate certainty of delivery
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align with the existing strategic objectives of the SAHP
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align with the priorities of the relevant housing authority
All proposals must provide supporting evidence at bid stage.
Acquisition of homes built for market sale
We expect most schemes to deliver homes through new land-led delivery (building homes on land you’ve acquired for the purpose). However, we will consider bids to use funding to convert homes planned to be delivered for market sale to social and affordable housing where this would:
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speed up delivery and increase the number of social and affordable homes delivered in this parliament (with completions by 31 March 2029) — for example, through the acquisition of unsold new-build homes or through funding future new-build delivery
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contribute towards the delivery of specialist and supported housing, including through remodelling or improving existing housing stock via the acquisition of existing market sale homes
What the funding cannot be used to deliver
SAHP funding cannot be used to acquire social and affordable homes secured by developer contributions through Section 106 of the Town and Country Planning Act 1990 or equivalent planning condition.
We expect partners who receive SAHP grant funding to also support the delivery of new social and affordable homes through Section 106 by acquiring those homes where there is an opportunity to do so. We will collect data and information on the number and type of homes partners are delivering through Section 106 and this will be used to inform any changes to the delivery and design of the SAHP.
Funding is also not available to deliver Specialised Supported Housing or Temporary Social Housing as defined by the government’s policy statement on rents for social housing.
Who can bid for the funding
We welcome bids from existing and new partners, including:
- not-for-profit registered providers
- for-profit registered providers
- local authorities
- housebuilders and developers
- charities
- community-led organisations
You can bid for funding as an individual organisation or as part of a consortium or Strategic Partnership.
Partners who will be landlords of homes built with SAHP funding for Social Rent, Affordable Rent or Rent to Buy must, by law, be registered with the Regulator of Social Housing (RSH). This can take at least 6 months. This requirement does not apply to grant funded homes built for Shared Ownership. All registered providers are also required to be members of the Housing Ombudsman Service.
If your organisation is an ‘unregistered body’ (not registered with the RSH) but intending to register, we recommend you have started the registration process before engaging with us, but don’t require you to have completed it before bidding.
If your organisation is an ‘unregistered body’ but not intending to register, you can still bid for funding to develop homes for rent — but once you’ve completed them, you must pass on ownership and management to a registered provider. Unregistered bodies can, however, own and manage Shared Ownership homes. Unregistered bodies can sign up to the Housing Ombudsman Service on a voluntary basis.
Ways to bid for the funding
There are 2 routes to access SAHP funding:
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Continuous Market Engagement (CME) which allows partners to bid on a scheme-by-scheme and portfolio basis
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Strategic Partnerships which allow partners to bid on a long-term, programme-level basis
Continuous Market Engagement
CME provides access to funding for the duration of the programme, while funding remains available, on a scheme-by-scheme basis. It is an effective way of supporting small and medium sized partners, new entrants and local authorities who have development ambition but are unable to deliver and spend at scale. It can also help deliver more complex schemes.
We offer 2 options under the CME funding route:
General
This will operate under the existing established CME framework and will enable partners to bid for grant funding to deliver individual sites on a scheme-by-scheme basis. Priority will be given to bids that represent good value for money, are deliverable, and align with national, regional and local affordable housing priorities.
Portfolio
This will focus on providing allocations across a portfolio of opportunities to support partners that can demonstrate delivery confidence and ambition for schemes that may be at different stages of delivery. This approach is designed to de-risk and accelerate delivery, as well as deliver strategic and place-based priorities.
Grant will be paid on achievement of applicable delivery milestones.
CME delivery timescales
Under the CME route, all homes must start on site by 31 March 2036 and complete by 31 March 2039. Any grant funding payments after 31 March 2036 are subject to budget availability.
We will prioritise early delivery for starts and completions for all CME allocations and will have a particular focus on completions by 31 March 2029. Within the first 2 years of the SAHP we do not anticipate allocating funding where homes are expected to start on site after 1 April 2031, unless they are linked to national strategic priorities and sites.
Strategic Partnerships
Strategic Partnerships provide access to funding on a long-term, programme-level basis and are designed to support partners with ambition, capability and track record of delivering large numbers of new social and affordable homes. This route offers partners greater certainty of funding for the duration of the programme and greater flexibility over the tenure and location of delivery (at a scheme-level).
We offer 4 different routes to become a Strategic Partner:
Land-led RP
This route is based on the existing model and is targeted at registered providers delivering at scale, typically across multiple regions, where they are taking or sharing in development risk. Grant will be paid quarterly in arrears based on development expenditure incurred.
Local authorities
This route will support local authorities, working alone or in partnership with registered providers, to deliver projects in a single region, where they are taking or sharing development risk. Grant will be paid quarterly in arrears based on development expenditure incurred.
Specialist and supported housing
This route will be targeted at registered providers delivering the majority of their homes via supported, high design, or complex housing schemes where they are taking or sharing development risk. Grant will be paid quarterly in arrears based on development expenditure incurred.
Developer delivery
This route will be targeted at either developers who plan to sell homes to registered providers for additional affordable housing over and above planning requirements or registered providers contracting with developers to acquire additional affordable housing at scale, predominantly on a turnkey basis, at practical completion. Grant will be paid quarterly in arrears based on achievement of applicable delivery milestones and development expenditure incurred.
We are looking to support a diverse range of partners and are opening up strategic partnerships to new and existing partners.
Initial bid requirements
New Land-led or Developer delivery Strategic Partnerships:
- must deliver a minimum of 1,500 homes by 31 March 2036
- will have an initial funding cap of £250 million
Local authority Strategic Partnerships:
- must deliver a minimum of 800 homes by 31 March 2036
- will have an initial funding cap of £250 million
Specialist and supported housing Strategic Partnerships:
- must deliver a minimum of 800 homes by 31 March 2036
- will have an initial funding cap of £250 million
Existing Strategic Partnerships:
- must deliver a minimum of 1,000 homes in addition to their existing commitments by 31 March 2036
- will have an initial funding cap of £350 million
These apply to Land-led registered provider and Developer delivery routes.
Strategic Partnership Plus partners:
- must deliver a minimum of 4,000 homes by 31 March 2036, of which 1,000 must be completed by 31 March 2029 (can include homes allocated via bridge funding)
- will be eligible for an initial funding cap of up to £700 million
Strategic Partnership Plus is available to existing Strategic Partners who can clearly demonstrate ambition, scale and pace of delivery. They must also clearly demonstrate how they will meet specific national and regional strategic priorities and deliver across all tenure types.
Strategic partnership delivery timescales
Under the Strategic Partnership route, all homes must start on site by 31 March 2036 and complete by 31 March 2039 (with any grant funding payments after 31 March 2036 subject to budget availability).
We will prioritise early delivery for starts and completions for all Strategic Partnership allocations, with a particular focus on completions by 31 March 2029.
All Strategic Partners are subject to annual review of delivery performance including progress against the identification of sites to fulfil their programme under the grant agreement. All Strategic Partners will need to convert at least 50% of allocations to identified sites by 31 March 2031.
Additional allocations to partners
We expect to offer Strategic Partners the opportunity to apply for additional funding over the duration of the SAHP, subject to funding availability and them being able to demonstrate good progress towards the delivery of their initial allocation, including the number of homes that have been completed.
As grant is not attributed until homes are completed under the Strategic Partnership route, a maximum rolling funding cap will be introduced when considering additional funding applications. This will take into account the amount of funding that has been paid to the Strategic Partner that has not yet been attributed to completed homes.
Further information on strategic partnerships
All Strategic Partners must also demonstrate diverse delivery to support the priorities of the programme, such as tenure, specialist and supported housing, rural housing and regional priorities.
Where Strategic Partnership applications include proposals to use funding to support the regeneration of existing housing estates, we expect partners to indicate how many of the overall social and affordable homes they plan to deliver will be replacement homes and, where possible, provide scheme-specific information. Replacement social and affordable homes can form no more than 10% of a strategic partnership application.
Where strategic partnership applications include proposals to acquire homes built for market sale and convert them to social and affordable housing, this can represent no more than 10% of their total delivery of homes.
When to bid for the funding
Before the programme opens
Homes England must obtain and consider a subsidy report from the Competition and Markets Authority (CMA) before it makes the Social and Affordable Homes Programme a subsidy scheme. This is required by the Subsidy Control Act 2022. The CMA will report on our submission and may make recommendations.
This guidance has been published to allow partners to review the current details and requirements, before Homes England has received the CMA’s subsidy report for consideration. Once we receive and review the CMA’s subsidy report, we may update this funding guidance before inviting bids. If any changes are made, we will clearly communicate these to partners before bidding opens.
SAHP bidding will only open after the CMA process has been completed to Homes England’s satisfaction.
We expect to open for bidding throughout both CME and Strategic Partnership funding routes in February 2026 subject to subsidy control compliance.
The CME funding route allows you to bid for funding for 1 or more development schemes at any time during the programme, subject to funding being available.
The Strategic Partnership route allows you to bid for funding at a programme-level, with schemes to be delivered over the duration of the SAHP. We expect there to be a further opportunity to apply for funding through the Strategic Partnership funding route through the programme. Each bidding round will be open for 6 weeks.
How to bid for the funding
Further guidance and information on how to bid will be provided ahead of bidding opening. This will include information on both the bidding system and funding routes (especially CME portfolio route and the Strategic Partnership funding routes).
If you would like to discuss a potential bid you can contact Homes England about the Social and Affordable Homes Programme (SAHP) 2026 to 2036.
How we assess bids for funding
All bids for grant funding will be assessed based on value for money, strategic fit and deliverability, but this can vary between CME and Strategic Partnership funding routes.
Homes England will be responsible for assessing and making the final decision on which bids to support. However, we will work closely with EMSAs where delivery is planned in their area. For Strategic Partnership applications, EMSAs will be asked to provide feedback on the aggregated bids in their area. For CME bids that are complex or relate to the EMSA’s priority growth areas, they will be asked to input into the decision-making process.
CME assessment process
We assess CME bids against these criteria:
Value for money
Partners will be expected to take all reasonable measures to minimise the level of grant funding requested (cost minimisation). The primary metric for assessment is grant per home, benchmarked against national area and scheme type averages to ensure bids are competitive in terms of cost and delivery output. Schemes which do not meet an acceptable range will be subject to further assessment to ensure value for money.
Strategic fit
Partners will be expected to demonstrate bids are aligned with the strategic priorities for the programme — both national and, where relevant, regional (for example, EMSAs). Those demonstrating the closest alignment will be prioritised and this would be reflected in any assessment of additional costs and grant.
Deliverability
To ensure the scheme can be delivered within the programme timeframe, deliverability will take account of the level of planning, land ownership and progress on contracting at the point of bidding. We will also consider past performance where relevant, and how bids support local authorities in meeting local housing needs.
Strategic Partnerships assessment process
We assess Strategic Partnership applications against these criteria:
Value for money
Bids will be assessed using a Benefit Cost Ratio (BCR) as set out in the MHCLG Appraisal Guide. Factors which affect this include, but are not limited to:
- the speed of delivery
- the tenure of delivery
- the timing of any grant payment
- the level of grant funding requested
- whether development is on brownfield or greenfield land
- land value uplift
Strategic fit
Partners will be expected to demonstrate bids are aligned with the strategic priorities for the programme — both national and, where relevant, regional (for example, EMSAs). Those demonstrating the closest alignment will be prioritised.
Deliverability
Bids will be assessed according to their deliverability on a pass or fail basis. This will consider factors including, but not limited to:
- previous track record, including experience of delivering at scale and in the geographies proposed
- evidence of pipeline and the planning status of that pipeline
- delivery capacity and local relationships
- proportion of the bid that relies on other delivery partners
- proposed spend and delivery profile (and link between these)
Design, quality and sustainability
All homes delivered using SAHP funding must meet the relevant national and local legislative, regulatory and planning policy requirements and practice. This includes compliance with Building Regulations Approved Documents Parts F, L and M.
Partners should also aim to meet Nationally Described Space Standards (NDSS).
We encourage partners to consider how they can use SAHP funding to deliver social and affordable homes above these minimum requirements. We are keen to understand how SAHP funding can support partners’ own plans, as well as align with our own strategic ambitions, including how:
- planned development schemes would have no ‘reds’ under the Building for a Healthy Life (BHL) Standard assessment
- planned development schemes align with design requirements and good practice set out in Homes England’s Healthy Homes – a foundation for healthier and resilient communities
- BHL and Healthy Homes have been adopted into partners’ own development principles
Equality, diversity and inclusion
Homes England recognises that equality, diversity and inclusion (ED&I) are central to delivering high-quality homes and thriving communities. We expect all partners applying for SAHP funding to share these values and to demonstrate their commitment to inclusive practice in the design and delivery of their projects.
Partners must comply with the Equality Act 2010 and other relevant legislation.
Partners will be required to confirm they have, and maintain, an Equal Opportunities Policy that prevents discrimination and promotes equality of opportunity. Policies should be transparent and accessible (for example, published on partner websites and available in accessible formats) and should clearly set out how discrimination is eliminated and equality advanced. Organisations must also have due regard to the Public Sector Equality Duty under Part 11 of the Act and be able to show how these responsibilities are embedded within their leadership, workforce and operations.
We expect partners to embed ED&I principles across every stage of their schemes. This includes treating communities, contractors and suppliers with dignity and respect, and ensuring procurement and delivery processes are fair, transparent and inclusive. Partners should be able to demonstrate how their approach to design, engagement and delivery will eliminate discrimination, advance equality, and respond to the diverse needs of the people and places their scheme serves.
Flexibility
We do not publish national, regional or scheme type benchmarks, but recognise that some types of social and affordable housing can often cost more to deliver — for example, schemes delivered by councils, specialist and supported housing, rural housing and community-led housing. We will assess all bids against the strategic priorities of the SAHP, both national, and, where relevant, regional. We are keen to support a wide range of delivery from a diverse range of partners where it demonstrates close alignment with those priorities.
Partners bidding to become a Strategic Partner will be able to bid for 2 grant rates per tenure, per region to support them to distribute grant across lower and higher cost schemes. This could support the delivery of national strategic priorities or address differences in delivery costs and values within the regions. It will not be explicitly linked to individual strategic priorities and will be assessed against costs.
Partners will be able to combine grant funding with Right to Buy receipts when submitting bids for the SAHP.
In all bids, partners will still be expected to minimise the level of grant requested and maximise their own contribution.
Data and information sharing
We will share personal data and delivery information included in your application for funding and, if approved, ongoing allocation and scheme information with other organisations including:
- Ministry of Housing, Communities and Local Government (MHCLG)
- Regulator of Social Housing (RSH)
- relevant EMSAs
- local authorities
Contact us
Contact Homes England about the Social and Affordable Homes Programme (SAHP) 2026 to 2036.
After applying
Find out what happens after applying to the Social and Affordable Homes Programme 2026 to 2036.