Rural Lens Review: Social and Affordable Homes Programme

• The Social and Affordable Homes Programme (SAHP) published by the Government on 7 November 2025 is a new 10-year capital grant programme for England (outside London via Homes England; inside London via Greater London Authority).
• It has at least £27.3 billion of government funding to deliver new social and affordable homes outside of London over the next decade.
• Its primary objective is to maximise the supply of affordable housing, especially for the social rent tenure. Specifically, at least 60% of homes delivered through the programme must be for Social Rent.
• The programme covers new-build homes and some conversions, acquisitions, supported/specialist housing, rural and also community-led housing. Only RPs can apply for grant for social and affordable rented housing. There are two delivery routes:
  - Continuous Market Engagement (CME) – scheme-by-scheme bids.
  - Strategic Partnerships – longer-term, programme level.

• Timescales: homes must start on-site by 31 March 2036 and complete by 31 March 2039 (via CME route) for many grants.

What this means for rural areas

The SAHP has some particular features, opportunities, and challenges from a rural viewpoint. The guidance states that “homes in rural areas” and “community-led housing” are eligible and recognised.

This means smaller-scale developments, Registered Providers and community land trusts in rural places can apply. Rural housing need (often less market-viable) is being recognised.

The above having been said, the SAHP explicitly encourages Registered Providers (RPs) to “start preparing large and ambitious proposals ready for when bidding opens in February.” Alongside the rest of the sector many of the smaller RPs serving rural areas may be prioritising the application of financial and staffing resources to improvements to existing stock – including energy efficiency/net zero measures. This will limit the proposals they will be able to put forward. Rent convergence on the other hand may aid investment.

You can read the full Rural Lens Review by clicking on the image below: