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May’s new £2bn funding will not be available until 2022
The £2bn of funding for housing associations announced today by Theresa May will not be available until 2022, Homes England has said.
The prime minister announced £2bn of funding for “long-term partnerships” with housing associations to build “tens of thousands” of affordable and social rent homes.
A spokesperson for the government’s housing delivery agency told Inside Housing that the money will not be folded into the £9bn current Affordable Homes Programme, but will instead be available when that programme ends in March 2022.
In Ms May’s speech, she will say that the funds could stretch through to 2028/29, suggesting that they will be part of a new six-year funding programme.
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Although the government has not yet been explicit on how the funds will work, the programme will be modelled on Homes England’s current approach to striking ‘strategic partnerships’ with housing associations.
To date, the agency has allocated funding to eight strategic partners from the housing association sector, providing just under £590m from the £9bn programme in what it called the “first wave” of such deals.
According to James Brokenshire, housing secretary, these funds will deliver more than 23,500 homes across all tenures, 61% of which will be affordable.
Homes England is working on the second wave of these strategic partnerships, and has asked housing associations to increase the building of affordable homes by at least 25% if they are to sign these deals.
Social landlords bidding to be strategic partners will also need to commit to a minimum of 1,000 additional grant-funded affordable homes started on site by March 2022 and an absolute position of no grant funding being used on building homes agreed under Section 106.
Nick Walkley, chief executive of Homes England, said: “We welcome the additional £2bn announced by the prime minister. This extra funding will deliver a further 40,000 affordable new homes.”
Ms May said in her speech at the National Housing Summit today: “Today, I can announce that new longer term partnerships will be opened up to the most ambitious housing associations through a groundbreaking £2bn initiative.
“Under the scheme, associations will be able to apply for funding stretching as far ahead as 2028/29 – the first time any government has offered housing associations such long-term certainty.”
More on Theresa May's NHF speech
All our coverage of Theresa May's historic speech on 19 September, 2018, in one place:
Orr: 'penny has dropped' for government on housing The outgoing chief executive of the National Housing Federation gives his take on May's speech
LGA warns May’s focus on associations ’misses the point’ about council-led building Reaction to the announcements from Lord Gary Porter, chair of the Local Government Association
Sector leaders hail ‘huge significance’ of May’s NHF speech Housing figures welcome the Prime Minister’s speech to the National Housing Federation’s annual conference in London
May’s speech shows a significant change in attitude towards the sector When was the last time a Conservative prime minister made a speech more favourable to social housing?, asks Jules Birch
In full: Theresa May’s speech to the National Housing Summit The full text of the Prime Minister’s historic speech
Theresa May throws support behind housing associations in landmark speech Read more about Theresa May’s speech which signalled a change in tone from the government towards housing associations
May’s new £2bn funding will not be available until 2022 Homes England clarifies the timescale for allocation of the new money promised by the Prime Minister
Morning Briefing: Labour hits back at May’s £2bn housing pledgeShadow housing secretary John Healey says May’s pledges are not enough
May to announce £2bn for strategic partnerships with associations at NHF conference The details released overnight ahead of the speech
