In recent years, growing housing waiting lists and increasing levels of homelessness have highlighted the scale of the UK's housing crisis. In response, in August 2026, the government launched the first wave of its Social and Affordable Homes Programme (SAHP). The programme is designed to help councils regenerate communities, accelerate housebuilding, and deliver a new generation of much-needed social rented homes.
Wave 1 allocates nearly £10 billion to build over 70,000 new social and affordable homes across England. [1]
This money is being distributed to 33 major housing associations and local authorities.
Mr Andy Burnham said: “No child should be raised in a hostel room, and no family should wait ten years for a front door of their own. I have said from my first day in this job that everything starts with a good home.” [2] This statement highlights why the SAHP funding is so important to enable change and how this programme will contribute to the UK's long-term well-being.
Where is the SAHP funding going?
Homes England administers the SAHP for the regions below. In wave 1, most funding will go to housing associations, with only 3 local authorities receiving funding. Here is a breakdown of allocations [3]:
- Greater Manchester: £529 million (4,400 homes)
- North East: £445 million (3,400 homes)
- West Yorkshire: £441 million (4,000 homes)
- West Midlands: £409 million (3,200 homes)
- Liverpool City Region: £380 million (3,100 homes)
- South Yorkshire: £249 million (2,200 homes)
Greater London is managed separately:
The Greater London Authority (GLA) manages the London region. London will receive £6 billion through the SAHP programme, with most of the funding expected to go directly to local authorities to deliver new council homes.
How will this impact the places we live?
Economic growth: The funding will help create jobs, build skills, and bring economic benefits to the regions that need them most.
Thriving communities: The focus on social rent provides stability for families. A secure home is a foundation for better life outcomes, from a child's education to an adult's employment prospects, all of which strengthens the communities we live in.
Tackling the homelessness crisis: By increasing the supply of affordable homes, the programme will directly tackle the homelessness crisis and the strain on temporary accommodation.
How can LHC help Housing Associations and Local Authorities?
Frameworks such as Architect Design Services (ADS2), New Build Housing Construction (H2), Modern Methods of Construction New Homes (NH3) and Multi-Disciplinary Consultancy (MDC1) enable organisations to procure specialist services both quickly and compliantly. By using LHC’s Added Value Services, organisations can reduce administrative burden. LHC’s frameworks streamline the entire project lifecycle from concept to completion, alleviating the management pressure typically placed on Housing Associations and Local Authorities.