On the 27th of June 2023, Homes England announced amendments to its funding rules that enable the affordable housing sector to fund new replacement homes and new affordable homes in their estate renewal projects.
By relaxing the rules on permitted allocations, Homes England aims to speed up major estate renewal schemes in line with the Government’s Affordable Homes Programme. The new flexibility makes it easier for the housing and regeneration agency to improve housing provision by replacing outdated homes rather than attempting to ‘patch them up’. Because replacing them with new, affordable homes is not just energy-efficient – it’s also far more cost-effective.
In constructionenquirer.com on the 27th of June, Peter Denton, chief executive of Homes England, said: “The affordable housing sector has always had to balance the investment it makes in existing homes with the investment in makes in building new homes.
“Over the past year, increasing financial pressures have made achieving that balance even more difficult to manage”.
Part of a wider effort to boost housing provision, and for the affordable sector in particular, the move is approved by the Department for Levelling Up, Housing and Communities and Peter Denton intends to implement the changes straight away – and to keep making funding decisions until March 2025, subject to funds being available.
In that spirit, he says, “We encourage all affordable housing providers and local authorities to come and talk to us as early as possible if they need support to develop their proposals – we’re here to help”.