England’s metro mayors are set to gain new powers and funding to tackle the nation’s social housing crisis, with £7 billion being devolved to regional authorities under the government’s £39 billion Social and Affordable Homes Programme. The move will give mayors greater control over how affordable homes are built and where investment is targeted, aiming to deliver thousands of new properties for families priced out of home ownership.
The £7 billion indicative spend will be split across six mayoral regions, subject to suitable bids: £1.8 billion for Greater Manchester, £1.7 billion for the West Midlands, £1.1 billion for the North East, £1 billion for West Yorkshire, £700 million for the Liverpool City Region, and £700 million for South Yorkshire. The funding represents a significant shift in housing policy, empowering metro mayors to lead local strategies for construction and allocation while working closely with Homes England to deliver homes tailored to regional priorities.
The new Social and Affordable Homes Programme is expected to support the construction of at least 180,000 new homes across England, with around 60 per cent designated as social rent properties. Housing secretary Steve Reed said: “Families have been trapped in so-called temporary accommodation for years or stuck on council waiting lists with no hope of a secure home. We’re changing that for good with the biggest boost to social housebuilding in a generation and getting behind mayors who are ready to build affordable housing across their regions. We’re also backing councils to build again and transform derelict sites into thriving neighbourhoods, urging them to go big, go bold and go build.”
Mayors will be responsible for identifying the types of homes required, prioritising construction sites, and assessing which bids for grant funding are best suited to local housing needs. Housing providers must show how their proposals align with these regional priorities, helping to ensure new developments address specific community demands such as accommodation for older residents and community-led housing projects.
Alongside this initiative, the government will inject an additional £150 million to redevelop derelict brownfield sites into more than 4,000 new homes. This funding will be provided directly to mayoral strategic authorities, ensuring that new housing is concentrated in areas most in need of regeneration and infrastructure renewal.
Homes England chief executive Amy Rees CB said: “The importance of this funding cannot be underestimated in opening the door to thousands of new, affordable homes for communities across the country – and we will do everything in our power to ensure every penny of grant allocation helps deliver the right homes in the right places, at pace, for the people who need them. Our team is incredibly proud and driven to help create a new generation of affordable and social rent homes, working alongside local leaders who know their communities best, and providers who have the expertise and commitment to deliver with our support.”
Paul Dolan, group chief executive of Riverside, welcomed the move, calling it a lifeline for struggling families. “This £7bn of funding for metro mayors to build new social and affordable homes will help thousands of people and families to access new, good-quality homes. We also warmly welcome the new Social and Affordable Homes Programme guidance stating that three in five homes should be social rent homes. At a time when we have record numbers of homeless households living in temporary accommodation, it is crucial to increase the supply of social rent homes.”
Mr Dolan added that the initiative could help reverse a long-term decline in social housing placements. “The number of homeless households moving into social housing has fallen significantly from 2004/05 when 51,040 households had their homelessness ended by moving into a social home. This funding will help to reduce homelessness and ease pressure on social housing waiting lists across our regions. Importantly, it will also enable Mayors to work with Homes England to decide where affordable housing will be built across our regions to ensure new homes meet local housing needs.”
The £7bn metro mayor housing funding represents a significant attempt to rebalance England’s housing system, placing decision-making in the hands of those closest to the communities they serve. With devolved control and targeted investment, it signals a new chapter for social and affordable housebuilding in the regions.
