It was announced last week that grant funding provided through the Government’s Affordable Homes Programme 2021-26, can now be used to fund replacement homes, alongside new affordable homes, as part of wider estate regeneration plans.

The aim of the changes is to replace housing that is outdated and no longer fit-for-purpose, with a larger number of high-quality, energy efficient new affordable homes.

Housing Minister Rachel Maclean said:

“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.  

“The changes I am announcing 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.

“I’ll continue to work with Homes England and developers to get delivering through this scheme as quickly as possible.”

The news comes as analysis by the RSN of Government figures reveal of all rural rented properties, 21.2% (266,706 homes) are deemed to be ‘non-decent’.  This means the homes do not meet the Decent Homes Standards which include a ‘reasonable degree of thermal comfort’ and to have ‘reasonably modern facilities and services’.

The change to the funding will come into effect immediately and decisions will be made on a regular basis up until the end of March 2025. Homes England says it is keen to see proposals that can deliver at pace, maximise the number of new affordable homes, and enhance wider efforts to level up and regenerate communities. All schemes must start on site by 31 March 2025 and will need to complete within the Affordable Homes Programme’s current timeframes.