Apply for affordable housing funding

About the government’sAffordable policyHomes onProgramme rents2021 forto social housing. 

2026

SocialAffordable Renthousing, as defined by the National Planning Policy Framework, is ahousing priorityfor sale or rent for thethose AHPwhose fundingneeds andare Socialnot Rent-specificmet grantby ratesthe canmarket. beThe accessedprovision inof allaffordable partshousing is a key element of the countrygovernment’s subjectplan to meetingend ourthe value-for-moneyhousing assessments.crisis, tackle homelessness and provide aspiring homeowners with a step onto the housing ladder.

The RightAffordable toHomes SharedProgramme Ownershipprovides (RtSO)grant appliesfunding to rentedsupport homesthe fundedcapital throughcosts of developing affordable housing for rent or sale. As the AHPgovernment’s housing accelerator, Homes England will be making available £7.39 billion from April 2021 to 2026.deliver Thisup allowsto eligible130,000 tenantsaffordable tohomes buyby aMarch share2026 – outside of theirLondon. rentedPartners homelooking to develop affordable housing in London can find more information on Sharedthe OwnershipGreater termsLondon Authority’s website.

Homes ForEngland moreis information,committed includingto propertyworking exemptionsclosely with a diverse range of partners – both existing and eligibilitythose criteria,we readhaven’t previously worked with – to maximise the government’simpact guidanceof forthis registeredfunding. providersIn onreturn, thewe Rightexpect partners to Sharedshare Ownershipthe ambitions set out in Homes England’s strategic plan to create a more resilient and Rightdiverse housing market. This means partners will also be expected to Sharedfocus Ownershipon –promoting guidesignificant foruse tenants.of Modern Methods of Construction (MMC), high-quality sustainable design and working closely with local small to medium-sized enterprises (SME) housebuilders.

Homes

What forthis ownership

AHPThe funding supportsis for the supply of homesnew forbuild affordable housing.

The information below provides an overview of the followingstandard routestenures intoand hometypes ownership: 

• Sharedof Ownershiphousing –supported. allowsPlease peoplerefer to buythe adetailed shareguidance offor aspecific homerules andaround payeach renttenure onset out in the remainingCapital shareFunding Guide.

• Home

  Homes Ownership for Peoplerent with(around Long-Termhalf Disabilitiesof (HOLD)homes –delivered)

  There aare type2 types of Sharedrent: Ownershipsocial thatand helpsaffordable peoplerent.

  Social withRent

  Homes let at below market rent by a long-termregistered disabilityprovider. buyThe rent level is calculated according to a homeformula thatbased meetson theirproperty specificvalues needs

• Olderand Personslocal Sharedearnings Ownership(target (OPSO)rent). –This ais typeset out in the Regulator of SharedSocial OwnershipHousing’s availableRent toStandard. people. agedFor 55full ordetails, over,please oftenrefer withto specificthe designSocial features

• Rent toguidance Buyin the Capital Funding Guide.

  Social –Rent homes letcan tobe workingfunded householdswithin atareas aof below-markethigh rentaffordability levelchallenge, soas theydefined canby savegovernment for athe depositAHP 2021 to buy2026, theiror firstelsewhere homeprovided that the grant requested is not higher than it would be for Affordable Rent

WeAffordable recogniseRent

Homes thatlet someat partnersbelow maymarket haverent by a reducedregistered appetiteprovider. forThe market-salerent risk(including associatedservice withcharge) deliveringis homeset ownershipat tenures.up Soto we’ll80% beof flexiblethe inlocal ourmarket assessmentrent offor thean strategicequivalent fithome. ofFor proposalsfull withdetails, routesplease intorefer hometo ownership.the Affordable Rent guidance in the Capital Funding Guide.

AcquisitionRoutes into Home Ownership (around half of homes builtdelivered)

There are 4 types of home ownership routes: shared, ownership for marketpeople salewith long term disabilities, older persons shared ownership and Rent to Buy.

WeShared expectOwnership

Shared mostOwnership schemesallows a customer to deliverpurchase homesa throughshare newof land-leda deliveryhome (buildingand homespay rent on landthe you’veremaining acquiredshare. The new Shared Ownership model sets the minimum share for purchase at 10% and places the purpose).repair However,and we’llmaintenance considerliability proposalswith thatthe includeprovider homesfor thatthe werefirst originally10 builtyears. Further details are set out in the Shared Ownership guidance.

Home Ownership for marketpeople salewith whereLong this:term Disabilities (HOLD)

• isShared near-termOwnership deliverypurchase andof willa helphome keepon the open market movingfor –people forwith example,a throughlong-term disability who are unable to find a new build home which meets their specific needs. Please see the acquisitiondetailed ofguidance unsoldon new-buildHOLD homesfor ormore throughinformation.

  Older fundingpersons futureShared new-buildOwnership delivery(OPSO)

• willShared contributeOwnership towardsavailable to over-55s. Ownership is capped at 75% of the deliveryvalue of supportedthe housing,home. includingOnce throughthis remodellingcap oris improvingreached, existingno housingrent stock

Otheris typespayable ofon development

Thethe fundingremaining alsoshare. supportsPlease see the developmentdetailed of:guidance on OPSO for more information.

• RegenerationRent –to Buy

  Homes let to fundworking replacementhouseholds homesat wherea theylower arecost beingto deliveredgive alongsidethem netthe additionalopportunity affordableto housing.save Seefor a deposit to buy their first home. The rent (including service charge) is set at or below 80% of the market rent for morean equivalent home for at least five years to allow a tenant to save for a deposit or purchase sooner via Shared Ownership. Full details are set out in the Rent to Buy guidance.

• SupportedThis housingfunding forsupports older,the disableddevelopment orof:

  • Supported vulnerableHousing people(10% –of homes delivered) - any housing scheme where accommodation is provided alongside care, support or supervision to help people live as independently as possible in the community
    community. See the Capital Funding Guide for information on the specific client groups that this funding covers. Supported housing can be developed both through new build and repurposing/improvement of existing homes. For details, refer to the guidance on reimprovement.

  • Rural housingHousing –(10% of homes delivered) - housing delivered in settlements with a population offewer less than 3,000

    3,000.

  • Traveller pitches –- funding to develop new sites,sites orand to add new pitches ononto existing sites, to help meet the accommodation needs of Travellertraveller communities

    communities. For details, refer to the guidance on traveller pitches.

  • Empty homes –- affordable homes broughtcan also be created by bringing existing empty homes back into useuse. asPlease affordablesee housing,detailed eitherguidance throughon purchase and repair or(our preferred model) and lease and repair options

    .

  Regeneration

  ProposalsPlease tonote, deliverthis replacementfunding affordabledoes homesnot willprovide needgrant to:for:

  • unlock Regeneration net– additionalthe homes,replacement alongsideof thehomes replacementdemolished homes 

  • startthrough onregeneration sitework byis 31not Marcheligible 2025

  • completefor byfunding. theA relevantgrant contractualmay longstopbe date

  • minimiseavailable to support the amountdelivery of grantnet requestedadditional peraffordable home

  • demonstratehomes certaintyon ofthose delivery

    schemes.

  • align Section with106 - the prioritiespurchase of thehomes relevantbuilt housingunder authority

  • alignSection with106 agreements, where the existingaffordable strategichomes objectivesare ofsecured thethrough AHP

  Alldeveloper proposals,contributions includingis thosenot fromfunded. StrategicHowever, Partners,we muststill berecord submittedinformation throughon theall CMEnil-grant route.affordable Strategichomes Partnersfor mustrent submitand proposalsreporting forrequirements will be set out in the schemecontract.

• Major specificRepairs level– ofworks grantto required.ensure Approvedhomes schemesare willhabitable thenare formnot parteligible for funding as this is the responsibility of the existingprovider Strategic(see Partnershipsfurther Grantguidance Agreements.

  Supportingon statementsmajor willrepairs). alsoWe bemay requiredaward funding in aexceptional standardcircumstances, templatein thatthe cancase beof requestedalms fromhouses yourfor usualexample, Homeswhere Englandthe contactcharity orisn’t byable emailingto AHPFAQ@homesengland.gov.ukcover .

  the cost of works itself.

FundingThe decisionsRight to Shared Ownership (RTSO) will beapply madeto all grant funded, rented homes, with some specific exemptions on atypes regularof basishome upand untilfor certain providers, which will be explained in the endguidance. ofExemptions Marchmay 2025,also subjectbe togiven availabilityif ofthere resources. 

Ifare youclear havebusiness anyreasons queriesfor orthe wouldprovider likenot to discusssell, afor potentialexample scheme,if contactthe AHPFAQ@homesengland.gov.ukmarket orvalue speakis tolower yourthan existingthe contactcost inof developing the Affordablehome Housing(including Grantsfinancing Team.

Thecosts). funding’sPlease widersee strategicthe objectives

The funding also supports some wider strategic objectives, including:

• usePlacing ofsignificant focus on and investment in Modern Methods of Construction outlined in the MMC section of the Capital Funding Guide. (There is more information in the MMC)

  definition framework, which sets out the 7 categories of MMC in detail.

• useEncouraging uptake of the National Design Guide, which is part of the government’s collection of planning practice guidance within the National Planning Policy Framework

  Framework.

• improvementImproving of the energy efficiency and sustainability of new affordable housing

  supply.

• Encouraging the use of smallSME and medium-sized enterprise contractors

  contractors.

WhenTo weallow assessfor athis, bidsome forof funding,these weelements lookare atincluded howin the proposedassessment developmentcriteria meetsfor ourfunding strategicapplications, objectives.and Weothers alsoare includeincluded in the objectivesstandard inconditions ourof grant agreement.funding.

WhoCheck canif bidthis funding is right for fundingyou

WeCurrently welcomemost affordable housing is built by housing associations, but we know that there is more ambition out there in untapped parts of the market. Homes England welcomes proposals from existing and new partners,partners including: 

• charities

• community– organisations

• housing associations, local authorities, developers, for-profit housingproviders, providers

• housingcommunity-led associations

• housingorganisations developers

• localand authorities

others who have an ambition to develop affordable homes – including those we haven’t previously worked with. You can bidapply for funding as an individual organisation or as part of a partnership or consortium. Please check the Capital Funding Guide for more information about consortium arrangements.

LandlordsTo ofreceive rentedgrant homesfunding, builtyou withneed AHPto 2021be toa 2026qualified fundinginvestment must,partner byof law,Homes England or be aworking registeredwith provider.an Thisorganisation meansthat youis. mustIn bea registeredconsortium, withonly the Regulatorlead oforganisation Socialneeds Housinginvestment (RSH),partner astatus, processunless whichother canpartners takealso atintend leastto 6apply months.for Allfunding registeredon providerstheir areown. alsoInvestment requiredpartner tostatus beconfirms membersthat oforganisations have the Housingfinancial Ombudsmanand Service.technical capacity to deliver their proposed scheme, and that they have financial and legal good standing.

IfFull yourinformation organisationon isthe anprocess ‘unregisteredand body’criteria (notare registeredavailable within thethe applying RSH),for investment partner status guidance. If you canare stillan bidexisting Investment partner, you will not need to reapply for fundingqualification for the 2021 to develop2026 funding.

For partners who will be landlords of homes built with our funding for rentSocial –or butAffordable onceRent you’veand completedRent them,to Buy, you mustare passrequired onby ownershiplaw andto managementbe toregistered with the Regulator of Social Housing as a registered provider.provider Unregistered(RP). bodiesApplications can,to however,register ownmust andbe managedone Sharedin Ownershipgood homes.time. UnregisteredFor bodiesmore caninformation signon uptimescales and how to apply, please see the HousingRP Ombudsmanguidance. ServiceThis onrequirement adoes voluntarynot basis.apply to homes for Shared Ownership

WhenFunding to bidroutes

TheThere Continuousare two routes to access funding:

• Scheme by scheme bidding through continuous market engagement (CME).
• A multi-year strategic partnership to access grant for a longer-term development programme.

 Continuous Market Engagement Route (CME)

CME provides access to grant throughout the duration of the programme, while funding remains available. This route allows youproviders to bidapply for funding for oneindividual orschemes. moreAll development schemes atfunded anythrough timeCME duringmust thehave programmestarted whileon fundingsite isby available. 30 September 2025 and be completed by 31 March 2026.

SchemesYou fundeddo not need to be an investment partner to apply for funding through CME, must:but you must have gained investment partner status before grant payments can be made.

•  Strategic partnerships

  startStrategic partnerships are a range of tailored, longer-term deals for organisations that have the ambition, capacity and successful track record of delivering large numbers of new homes at significant pace. This route gives partners the certainty of agreed funding for the duration of the deal, with greater flexibility to deliver within agreed parameters on sitelocation and tenure.

  Strategic partnerships offer significant support outside of grant funding, with potential to access a wealth of knowledge and expertise from across the agency, and greater emphasis on collaboration with Homes England and within the sector. Partners are supported by 30a Septemberdedicated 2025key account manager (KAM), who will help you to get the most from our diverse range of resources, and manage the strategic focus of the relationship through the Strategic Framework Agreement.

  To submit a proposal for a strategic partnership, you must be a qualified investment partner. The key parameters for funding under the four types of partnership are:

  • that you will build a minimum of 1500 homes

  • that all strategic partnerships will be completeexpected byto 31deliver Marcha 2026

    minimum of 25% of homes through MMC.

  How

  A tomaximum bid

  of 10% of the total homes in your proposal can be delivered through acquisitions of stock (for either remodelling or improvement for supported housing and/or purchase of completed homes newly built for market sale).

  ReadSchemes guidancefunded through strategic partnership must start on biddingsite forby AHPthe funding31 throughMarch 2026 and be completed by the CME31 route. March 2028 with focus on ambitious levels of delivery in the first five years of the programme.

  IfAll youpartners wouldallocated likefunding in the 2021 to discuss2026 programme must fulfil their contractual commitments under any existing grant agreement. Strategic partnerships for 2021 to 2026 will begin a potentialnew, bid,separate contactcontract us:with AHPFAQ@homesengland.gov.ukHomes England -and all grant will need to be drawn down by 31 March 2026.

  Read the strategic partnership application guidance for full details. on parameters and conditions of funding through a strategic partnership.

  How weto assessapply bidsfor funding

  We

  Scheme assessby scheme (CME) bidsapplications

  CME againstis thenow followingopen criteria:for funding applications.

  • costApplications minimisation through CME will stay open while funding remains available. These applications are assessed on their individual merits.

  • deliverability Information required for an application will cover two areas:

    • alignmentapplicant withdetails the(for strategicexample, objectives

      type of organisation and location)

    We

  • scheme expectdetails you(for toexample, takegeography, alltenure, reasonablenumber measuresof tohomes, minimisecosts, theland, amountplanning ofand grant you’rerequested)

  CME requestingapplications (costwill minimisation).be Ourassessed against the following criteria:

  • Cost minimisation - the primary assessment metric is grant per homehome. whichThis weis benchmarkbenchmarked against national, local and scheme-typescheme type averages to ensure bids are competitive foron both costs and outputs. outputs.

  • WeDeliverability need- to ensure schemesthe scheme can be delivered within the funding timeframe.timeframe, Whendeliverability wewill assess deliverability, we take into account of the progresslevel you’veof madeplanning, withland yourownership scheme (for example, with planning permission and landprogress ownership)on contracting at the point of bidding. We will also assessconsider past performance wherefor relevant,current partners and forecasts from comparable schemes for new partners. Bids will also be tested on how bidsthey supportare supporting local authorities in meeting local housing needs.

  Partner

  We qualificationwill also consider how schemes demonstrate alignment with the strategic objectives (use of MMC, use of the National Design Guide, working with local SME contractors and contractprovision forof funding

  Oncerural you’vehousing securedand asupported fundinghousing). Detailed allocation,information youon mustthe meetassessment certainprocess requirementsand beforecriteria, youand canhow receiveto submit bids for funding is available in the funding.guidance on applying for funding through CME.

  InvestmentStrategic partnerpartnerships

  Applications qualificationfor funding through a strategic partnership are made through a competitive process and duefixed diligencebidding checksperiod.

  You mustThe bebidding aperiod qualifiedis Investmentexpected Partner to receiveopen grantin fromMarch Homes2021 England,for unless6 you’reweeks. We will confirm the submission deadline in due course.

  To apply for a consortiumstrategic –partnership, inyou whichwill case,submit onlya theproposal leadthrough organisationour ofonline portal within the consortiumbidding needsperiod. These will be assessed, scored and ranked to determine the successful applications which will also be ansubject Investmentto Partner. consideration of budget availability.

  InvestmentStrategic Partnerpartnership statusproposals confirmswill you:be assessed against the following criteria.

  1. areValue eligiblefor tomoney be(50%) a– partnerscoring (foruses example,a registeredbenefit-cost providersratio must(BCR), be compliant with allMHCLG standardsAppraisal setGuide by2016 and HMT Green Book 2018. The ratio weighs the Regulatoreconomic benefit of Socialgrant Housing)

     funding against the economic cost. The higher the benefits relative to costs, with focus on early delivery, the higher the BCR score.

  2. haveStrategic priorities (30%) – use of Modern Methods of Construction (MMC), use of the financialNational Design Guide, working with local SME contractors, and technicalprovision capacityof torural deliverhousing, yourand proposedsupported scheme(s)

     housing.

  3. haveHome financialOwnership and(20%) legal– ‘goodapplications standing’will (forbe examplescored –against youhow havewell thethey fullcontribute powerto andthe authorityGovernment’s ambition to enterincrease intohome ownership.

  4. Deliverability – an agreementassessment withof Homeshow England)
     deliverable the proposal is will identify whether the overall proposal has passed or failed.

  YouRead canthe applystrategic partnerships application guidance for Investmentfull Partnerdetails status:on parameters and requirements of funding which apply to different partner types, and how to submit a proposal online.

  • atIf theyour sameproposal timeis assuccessful, we will work with you submitto aidentify bidhow forwe fundingcan underbest support you through the AHPnon-grant or;

  • afterrelated yourinterventions bidoutlined hasin beenour successfulbroader andstrategic you’vepartnership securedoffer. Where appropriate, we will create a fundingco-developed allocationdelivery plan which will support the partnership and help you to work with Homes England to maximise its outcomes.

  However,

  Next we’llsteps onlyfollowing assessapproval

  Confirming eligibility and entering into contract

  If your funding application afteris you’veapproved, securedyou awill fundingneed allocation.to meet certain requirements before you can receive affordable housing grant.

  ForYour furtherapplication informationto seebecome Applyan forinvestment Investmentpartner Partnermust status.be Wemade mayand alsoapproved askbefore youany topayments supplyare informationmade. forThis ourmay involve some level of ‘Know Your Customer’ due diligence checks.

  Workingchecks. withSee the Regulatorguidance ofon Socialapplying Housing

  Thefor Regulatorinvestment ofpartner Social Housingqualification willfor providefull advicedetails.

  If toyou Homesare Englandapplying onthrough whetherCME, anyor proposalyou toare awarda grantdelivery topartner for a registeredstrategic providerpartnership, willyou havemust anqualify adverseas impactan oninvestment thepartner Regulator’sbefore publishedany judgementgrant onpayments theare organisation’smade.

  Some governancelevel andof financialKnow viabilityYour rating.Customer Registereddue providersdiligence checks may be askedinvolved.

  If applicable, your application to providebecome additionala informationregistered toprovider with the Regulator toof informSocial theHousing assessmentmust asbe necessary.approved.

  Grant agreement

  InvestmentYou Partnerswill needbe required to enter into a new supply agreement with us.Homes ThisEngland. The isCapital knownFunding asGuide theincludes granta agreementsummary (orof contract).the Youterms can read examples of the AHP grant agreement.

  Receiving grant payments

  TheFollowing Capitalthe Fundingexecution Guideof containsthe detailedcontract, informationHomes onEngland will pay out grant paymentsdepending foron the CMEroute fundingyou route.applied through.

  CME For paymentsscheme forby registeredscheme providersCME

  IfCME you’rebids agrants registeredwill provider,be we’llpaid payagainst you the grantachievement whenof you achieve certain delivery milestones.milestones In– most cases, we pay:

  • 40% aton site acquisition

  • acquisition, 35% aton start on site 

  • site and 25% aton practical completion

  Therecompletion. mayFor be different payment arrangements in place for some typeseligible ofproviders, scheme.it In some instances, you may be ablepossible to claim up to 95% of the payment at start on site.

  Further information on grant payments for CME paymentsis foravailable unregisteredin bodiesthe (URBs)Capital Funding Guide.

  Strategic partnerships

  IfFor you’restrategic anpartnerships URB,grant we’llpayments paywill youdepend 100%on the type of theorganisation:

  • For fundingnon-profit atregistered practicalproviders completionand oflocal theauthorities, scheme. 

    Alternatively,grant ifwill yoube providepaid satisfactoryon formsa ofquarterly securitybasis youagainst canrelevant askcapital usdevelopment toexpenditure payincurred you:

    • 40%in atarrears acquisition

      in the previous quarter.

    • 35%For atfor-profit startregistered onproviders siteand (orURBs, 75%grant ifwill yoube don’tpaid claimquarterly atagainst acquisition) 

    • 25%achievement atof practicaldelivery completion 

      milestones.

    The contract will specify the agreed schedule for drawdown of grant. If youdifferent choosetypes of organisation become delivery partners, this option,means we’llthat alsogrant carrywill outbe anypaid necessarydifferently for each partner.

    Further information is available in the strategic partnerships guidance.

    For organisations who are not registered providers (referred to as Unregistered Bodies or URBs)

    Homes England will carry out due diligence checks on anyviability other(including organisationlong providingterm if it intends to retain an interest in the security.homes). URBs will be paid 100% of the agreed funding at practical completion of the scheme. Earlier payment may be possible if satisfactory forms of security are available.

    Reporting

    Monitoring and reporting on progress

    YouAll mustpartners will be required to report on delivery at regular intervals. This includeswill providinginclude data and metrics relating to the strategic priorities of the programme.Affordable Homes Programme.

    WeAs part of our programme and contract management, Homes England also carrycarries out an annual ‘complianceprocedural audit’compliance audit on a sample of schemes to ensure partnersrequirements have metbeen ourmet. requirements.More We’ll let you know if we’ve selected you for an audit. 

    The Capital Funding Guide contains detailed information onabout reportingthis andis auditavailable requirementsin for the CMEprogramme fundingmanagement routeguidance. 

    You canand alsostrategic readpartnerships guidance onas the compliance audit process.applicable.

    Transparency

    Open withBook costs and spending

    transparency

    WeHomes publishEngland publishes information relating to the costs and spendingexpenditure of the schemes wefunded fund through the Affordable Homes Programme. As a condition of funding, there are contractual obligations for partners around the sharing and publishing of this information. information. Partners who are awarded funding of more than £3million also need to publish details of expenditure over £500 relating to their development schemes every quarter, which Homes England may also publish.

    YouPartners mustare required to supply information about development costs and agree wethat Homes England can verify this on an ‘open book’ basis at any stagestage.

    Regulatory (thisrequirements

    The isRegulator knownof asSocial anHousing ‘openwill bookprovide basis’). 

    Ifadvice weto awardHomes youEngland fundingon ofwhether moreany thanproposal £3to million,award yougrant mustto publisha detailsregistered ofprovider spendingwill overhave £500an relatingadverse toimpact youron developmentthe schemesRegulator’s published judgement on athe quarterlyorganisation’s basis.governance Weand financial viability rating. Registered providers may alsobe publishasked thisto information.provide additional information to the Regulator to inform the assessment as necessary.

    Contact usTimetable

    • Launch – 10 September 2020
    • Stakeholder engagement – September – November 2020
    • CME applications invited – 15 December 2020
    • Strategic partnership proposals invited – anticipated by the start of 2021

    IfThe youtimetable havewill anybe queriesupdated orwith wouldmore likedetailed toinformation discussas aand potentialwhen bid,it contactbecomes usavailable.

    Allocation atUpdates

    We AHPFAQ@homesengland.gov.ukwill orpublish speakupdates tofor yourthe Affordable Homes EnglandProgramme contract2021 managerto in2026.

    2021 theto 2026 Affordable HousingHomes Grantsprogramme Team.Summary: end of March 2023 - GOV.UK (publishing.service.gov.uk)

    Contact

    For further information, contact us at ahp2126@homesengland.gov.uk