Homes England has revealed that funding available from the government’s Affordable Homes Programme can now be used to finance replacement homes
The announcement is part of the broader estate regeneration scheme designed to improve access to affordable housing in England.
Homes England can now better support its partners in replacing outdated housing that is no longer fit for purpose. It is hoped the funding will lead to a larger number of high-quality, energy-efficient, affordable homes.
“We remain committed to building the affordable homes this country needs, and a key part of this is improving the quality and supply of social housing,” said housing minister Rachel Maclean.
“The changes I am announcing today will unlock more affordable housing by ensuring we replace old homes with ones that are fit for the future. This is absolutely critical in helping us regenerate communities, speed up housing delivery and provide high-quality homes for more families,” she continued.
The change is part of the Homes England’s long-term plan
The change to the Affordable Homes Programme was supported by the Department for Levelling Up, Housing and Communities. It is part of a five-year strategic plan published in May, which outlines plans to drive regeneration and housing delivery to create high-quality homes across England.
The funding will be available to partners looking to replace existing homes with new affordable homes and build additional new affordable homes. It will also be available to those looking to only build new affordable homes.
Providers can apply through Homes England’s market engagement route, while existing Strategic Partners can use the funding already allocated to them.
The change will come into effect immediately and last until the end of March 2025, subject to the availability of funding.
Homes England is looking to create affordable housing quickly
Homes England is seeking proposals that prioritise fast implementation, aiming to maximise the amount of new affordable homes. All projects must commence construction by 31 March 2025 and adhere to the existing timeframes outlined in the Affordable Homes Programme.
“The affordable housing sector has always had to balance the investment it makes in existing homes with the investment it makes in building new homes. Over the past year, increasing financial pressures have made achieving that balance even more difficult to manage,” Peter Denton, chief executive of Homes England.
“This change is something the sector has been calling for, and with it, there is a real opportunity to accelerate the regeneration of social housing and help level up communities across the country,” he concluded.
