The SAHP provides grant funding to support the capital costs of developing affordable housing in England, but outside London it’s been lauded by Homes England as “the largest investment in social and affordable housing in a generation”.
The Government has just awarded its first wave of funding with £9.58bn allocated to 33 “strategic partners” across England to help deliver 73,600 homes over the coming decade.
What Does this Mean for Developers and Landowners?
Much of the attention is focusing on Housing Associations and Councils that secured funding, but the bigger story for developers and landowners is the opportunity signalled by the future of the affordable housing market.
Many of the strategic partners have secured grants of over £300m which they’ll now be looking to invest. The certainty of large and long-term funding should inspire confidence amongst providers and encourage partnerships with developers and landowners alike. Organisations such as Orbit, Clarion, Platform, Places for People, Sage Homes and Vistry have all secured substantial allocations.
The SAHP has a particular focus on funding sites that can deliver homes by March 2029 to help hit the Government’s ambitions to build 1.5 million homes. Many consented or late-stage sites that have stalled owing to weak demand from affordable housing providers may now experience stronger interest from strategic partners looking to accelerate delivery against programme targets. Those partners will also have an eye on future pipelines and are likely to engage in longer-term strategic partnerships to unlock new sites.
Affordable housing providers are moving into the next decade with significantly greater purchasing power and delivery ambitions. Those building relationships with strategic partners are likely to be best placed to benefit from the opportunities that follow.
Our Real Estate Development Team is positioned to support developers and landowners in navigating the opportunities that this new wave of investment is creating. Contact us here: 0345 450 5558 or email us here: development@stephens‑scown.co.uk
This article was written by Henry Barker, Senior Associate in our Real Estate team.