Mayors to get control over affordable housing under ‘trailblazer’ devolution deals

The new approach being piloted for the current AHP 2021-26 represents “the first time that decisions on local affordable housing priorities have been devolved, outside of London”.

The plans will see Homes England invest at least £200m of AHP funding within the WMCA area by March 2026, with a clear ambition to invest up to £400m to build more social and affordable homes by 2026.

In Greater Manchester, where a partnership between Homes England and the combined authority already exists, at least £400m of AHP funding will be invested in the region by March 2026.

Greater Manchester mayor Andy Burnham hailed the city region’s first devolution deal with the government since 2017 as its “most significant yet”, as it secures much greater influence over crucial policy areas.

Mr Burnham said: “This is the seventh devolution deal Greater Manchester has agreed with the government and it is by some way the deepest. This deal takes devolution in the city region further and faster than ever before, giving us more ability to improve the lives of people who live and work here.”

It includes devolving £150m in brownfield funding to GMCA, supporting the authority to deliver 7,000 homes over the next three years. 

In addition to greater control over areas such as housing and transport, from the next Spending Review the combined authorities will have a new departmental-style arrangement with a single pot of funding. 

According to the WMCA, this will give local leaders “unparalleled control over spending on devolved areas, marking a seismic shift in power and influence from Whitehall to the West Midlands”.

West Midlands mayor Andy Street said the announcement marked an end to “begging bowl culture” where the regions had to submit applications for various pots of funding.

Mr Street said: “I’m pleased to see that this new devolution deal goes some way to addressing that – giving us guaranteed devolved funding to spend how we choose, akin to what government departments have currently, and doing away with Whitehall micromanagement.”

The Budget documents did not confirm whether the mayoral administrations would get direct control over allocating grant, as is the case in London. 

James Prestwich, head of policy at the Chartered Institute of Housing, told Inside Housing this would be welcome. “Why reinvent the wheel, when you have a model in London that already does a good job?” he said.

He added that he hopes the mayors will be given flexibility to use the funding for regeneration projects as well as new build. 

Matthew Walker, chair of the Placeshapers group, which represents more than 100 housing associations across the country, welcomed the devolution deals.

He said: “We think in particular members in Manchester and Birmingham are going to look forward to working with partners there. It does recognise the differing housing markets around the country and enables support to be directed to where it most is needed. So that’s a welcome change.”