Thirty-three strategic partners, including councils, housing associations and other providers, will receive long-term funding allocations through Homes England. Around 60% of homes delivered through the partnerships are expected to be for social rent, with nearly two-thirds of homes funded outside London expected to be at social rent levels. 

The announcement is the first major allocation from the government’s ten-year £39bn SAHP, with more than £16bn still to be allocated outside London. 

A key feature of the announcement is a renewed focus on local authority housebuilding. Councils will be awarded strategic partner status alongside housing associations, giving them access to longer-term funding arrangements intended to support housing delivery at greater scale. 

Ministers also confirmed measures designed to strengthen councils’ development capacity, including a further £46 million investment over the next three years to support housebuilding skills, expertise and planning capacity. The funding will continue programmes including the Council Housebuilding Support Fund, the Council Housebuilding Support Service and the Pathways to Planning graduate scheme. Councils will also be supported to make greater use of retained Right to Buy receipts and other funding streams.  

The announcement forms part of the government’s wider devolution agenda, with Established Mayoral Strategic Authorities (EMSAs) playing a greater role in shaping housing investment in their areas. More than £2bn of the funding announced is expected to be spent in mayoral authority areas outside London. 

Estimated investment through strategic partnerships includes £529m in Greater Manchester, £445m in the North East, £441m in West Yorkshire, £409m in the West Midlands and £380m in the Liverpool City Region. 

London will receive a separate boost through the programme, with the GLA intending to allocate at least £6bn. Councils are expected to deliver more than half of the homes funded through the programme in the capital.

Secretary of State Angela Rayner said: “Families can’t be left raising children without a place to call home, and none of us should spend years waiting for somewhere safe and affordable to live.

“I know how important fixing this is – because I’ve been there. A safe and secure home was the foundation for a better life - I couldn’t have got to where I have today without it.

“That’s why the Prime Minister and I are doing everything we can to get councils building once again – it’s fundamental to turning the housing crisis around, helping families out of temporary accommodation and into a secure home.”

Gavin Smart, CIH chief executive, said: “It’s very welcome to see funding from last year’s Spending Review now being allocated and getting into the hands of strategic partners across the country, turning the government’s long-term commitment into homes that can make a real difference for families.

“We welcome the strong focus on homes for social rent and the ambition for council housebuilding, and the recognition of the vital role that councils, housing associations and other providers will play in delivering the next generation of genuinely affordable homes. If delivered at pace, this investment has the potential to reduce homelessness, ease pressure on temporary accommodation and help more people access a safe, secure and affordable home.”

Francesca Albanese, director of policy & social change at Crisis, added: “With nearly 180,000 children currently living in temporary accommodation in England, we warmly welcome support being given to councils and housing associations to deliver more social homes in England, which we so desperately need.

“Councils have historically played a significant role in delivering social homes in this country. However, cuts to funding in recent years have seriously hindered their ability to do this. Last year, we saw a net loss of nearly 4,000 social homes across England. Now is an opportunity to address this and we can see the steps that the Westminster Government is taking to enable a new generation of council housing.

“This announcement means that the work of building more genuinely affordable homes at serious scale can finally begin. In particular, the strong commitment for at least 60% of those built intended for social rent.  

“This is a much-needed shift, and ministers must continue momentum. With people stuck on waiting lists right now, bringing forward more of the £39bn funding for social housing at the Autumn Budget should be seriously considered so that people can move into safe and secure homes as soon as possible and do not have to spend years in limbo. The Prime Minister has clearly stated that everything starts with a good home. Taking these steps will bring us closer to ending homelessness for good.”