The Social and Affordable Homes Programme (SAHP) 2026 to 2036 is the government’s new long-term capital grant programme for affordable housing in England. It replaces the current Affordable Homes Programme (AHP) over the rest of the decade and is intended to give providers more certainty so they can plan, invest and build at scale.
SAHP will provide up to £39 billion of funding across England, including at least £27.3 billion to support delivery outside London through Homes England. The programme aims to deliver around 300,000 social and affordable homes, with at least 60% of homes let at Social Rent.
For Registered Providers, councils, developers and community-led organisations, SAHP is a major opportunity, but it also needs careful planning. This guide explains what the programme is, who can bid and how SAHP is likely to shape investment decisions, then sets out how Thornton & Lowe can support you to build a realistic funding and delivery strategy.
SAHP 2026 to 2036: At a Glance
SAHP 2026 to 2036 is a 10-year programme covering England, with delivery led by Homes England outside London and the Greater London Authority in London. The programme will fund homes for rent and low-cost home ownership, specialist and supported housing, rural and community-led schemes, traveller pitches, bringing empty homes back into use and estate regeneration where there is a net gain in affordable housing.
There are two main routes into the programme: Strategic Partnerships for larger, long-term delivery and Continuous Market Engagement (CME), including a new portfolio CME option for grouped schemes. Bidding is expected to open from February 2026, with first grants from April 2026. All homes need to be completed by 31 March 2039.
SAHP and the Affordable Homes Programme 2021 to 2026
The Social and Affordable Homes Programme is the successor to the Affordable Homes Programme (AHP) 2021 to 2026. AHP remains the current five-year programme, providing grant to support affordable homes that can still meet its start and completion deadlines. From February 2026 onwards, SAHP becomes the main route for new long-term affordable housing investment.
In practice there will be a managed handover rather than a hard stop. AHP funding has been topped up several times, including a £2 billion bridge fund in 2025. Homes England explicitly describes this bridge funding as a “down payment” to support the new Social and Affordable Homes Programme, so partners can keep building while the new programme comes on stream.
For most organisations the pattern will be: finishing delivery of AHP-funded schemes and any bridge-fund projects, while preparing a SAHP pipeline for starts from 2026 onwards. It is less about choosing between AHP and SAHP, and more about using AHP to complete existing commitments and using SAHP as the framework for the next decade of development.
For a recap of AHP and other routes to affordable housing funding, you can also refer to our existing guide on Affordable Housing Funding & Grants.
Interested in SAHP?
Speak to our housing specialistsWho Can Bid for SAHP Funding?
Homes England’s guidance confirms that SAHP is open to a broad range of organisations. Not-for-profit and for-profit Registered Providers, local authorities, housebuilders and developers can all apply. Charities and community-led organisations are also in scope.
If an organisation is not registered, the completed homes will usually need to be owned and managed by a Registered Provider or local authority. In practice this means partnership working is central, particularly where community groups or developers are bringing forward opportunities and need an owning landlord.
Applications can come from a single organisation, from a consortium or under a Strategic Partnership where one or more lead organisations hold a long-term agreement with Homes England and work with delivery partners underneath that agreement. The right model will depend on scale, pipeline and appetite for risk.
If you are thinking about bidding into SAHP but are not yet registered, our detailed guide on How to Become a Registered Social Housing Provider sets out the key steps.
What SAHP Will Fund
SAHP is mainly aimed at new build supply, although there is some flexibility around acquisition, regeneration and bringing existing homes back into use.
Homes for Rent
The programme supports homes for Social Rent, Affordable Rent, and Intermediate Rent. In London, the GLA will also support the London Living Rent.
Social Rent uses the social rent formula based on local incomes and property values, and tends to be well below market rent. Affordable Rent is set at up to 80% of local market rent including service charges, while Intermediate Rent is approximately 80% of the full market rate.
Social Rent is a clear priority. The guidance expects that at least 60% of all homes funded through SAHP will be for Social Rent, and the policy statement describes the programme as a central part of plans to grow the supply of social rented housing.
Homes for Ownership
SAHP will also fund a range of low-cost home ownership products. These include Shared Ownership, Older Persons Shared Ownership (OPSO), Home Ownership for people with Long-term Disabilities (HOLD) and Rent to Buy.
There is growing focus on the experience of shared owners, including transparency of service charges and any building safety costs. That will need to be reflected in scheme design, information for buyers and long-term management arrangements.
Specialist and Supported Housing
SAHP funding supports specialist and supported housing for older, disabled and vulnerable people where the homes are genuinely affordable. The guidance covers a wide range of models, including housing with care, accessible or adapted homes, and retirement and sheltered housing.
It is important to note that SAHP cannot be used to fund “Specialised Supported Housing” or “Temporary Social Housing” as defined in the government’s policy statement on rents for social housing. In other words, the programme will not fund the lease-based, high-rent supported housing models that sit outside mainstream rent standards.
Rural, Community-Led Housing and Regeneration
SAHP can also support rural housing, including smaller settlements, and community-led housing where local organisations help shape development and long-term stewardship. Traveller pitches, bringing empty homes back into use and estate regeneration that results in additional affordable housing are also eligible.
This opens up scope for mixed programmes that blend estate renewal, infill, acquisitions and small rural schemes under a single strategic approach.
SAHP Funding Priorities: Social Rent, Established Mayoral Strategic Authorities and Local Need
Homes England sets two national strategic priorities for SAHP funding: increasing the supply of social and affordable homes, and maximising delivery of Social Rent. The programme sits within wider ambitions for overall housing supply and is described as a major step towards a “social rent revolution”.
Alongside this national picture there is a stronger regional layer. Six Established Mayoral Strategic Authorities (EMSAs) can set priorities for tenure mix, locations and types of schemes in their areas: Greater Manchester, Liverpool City Region, the North East, South Yorkshire, the West Midlands and West Yorkshire.
Homes England still makes the final funding decisions, but bids in EMSA areas will be expected to show how they respond to both national priorities and EMSA ambitions. Everywhere, bidders will need to demonstrate how schemes respond to local housing need at local authority level.
In practice this means that strong SAHP bids will evidence demand and affordability for Social Rent and other tenures, align clearly with local housing strategies and show how schemes support wider objectives such as regeneration, health, net zero or local economic growth where that is relevant.
Routes to Funding: Strategic Partnerships and Continuous Market Engagement
SAHP keeps the two main routes familiar from AHP, while adding some extra flexibility.
Strategic Partnerships
Strategic Partnerships are long-term agreements with Homes England. They are aimed at organisations that can deliver at scale and have a strong track record. In simple terms, a Strategic Partnership offers more certainty about multi-year allocations and a framework within which a lead organisation can work with delivery partners. It also allows a portfolio of schemes to be managed over time within agreed outputs and outcomes.
This route is usually best suited to larger housing associations and stock-owning local authorities with established development programmes. It can also work well where a group of organisations come together as a consortium and combine their scale, including regeneration-heavy programmes that need a longer horizon.
Continuous Market Engagement
The Continuous Market Engagement (CME) route remains open for bids that do not sit within a Strategic Partnership. It is particularly important for smaller providers or councils with limited development pipelines, rural and community-led schemes that are less suited to large-scale partnerships and specialist or supported housing projects that come forward in a more ad hoc way.
SAHP adds a new portfolio CME option, which allows bidders to bring forward groups of related schemes, such as a set of regeneration or rural projects at different stages. This can be useful where you have a theme or geography you want to focus on, but the individual schemes will not all be ready at the same time.
Choosing between a Strategic Partnership and CME will depend on your scale, pipeline and risk appetite. Some organisations may be involved in both, for example as a Strategic Partner on part of their programme and through CME for particular opportunities or collaborations, as long as the locations are different.
Need help with your bid?
Talk to us about SAHPTimelines, Milestones and Compliance
Although SAHP runs from 2026 to 2036, Homes England will focus on earlier delivery, with a strong interest in completions before the end of the current parliament and by March 2029 where possible.
More detailed rules on milestones, payments and compliance sit in the Capital Funding Guide and “After applying” guidance. These set out how milestones are defined, what evidence is needed, when grant can be claimed and how any changes to schemes should be managed. They also cover data and reporting requirements. In practice, this makes sound programme management and good information systems essential.
What SAHP Means for Your Development and Funding Strategy
SAHP is more than a new funding stream. It has wider implications for strategy and risk.
First, there is a clear shift in focus towards Social Rent. That changes the balance of rental income and grant, and providers will need to understand how higher Social Rent delivery can be supported in their business plans. In some cases this may mean more cross-subsidy from other activities, different borrowing assumptions or new joint venture models.
Second, SAHP is designed to support an increase in council housebuilding. Councils may choose to build directly, to work through their housing companies or to partner with Registered Providers and developers. Each option raises different questions around control, risk and long-term management.
Third, the length of the programme fits better with estate regeneration timetables. It becomes more realistic to plan multi-phase programmes that combine demolition, reprovision and densification, although providers will still need to show value for money and additional affordable housing across the whole portfolio.
Finally, SAHP sits alongside other Homes England funding such as the Home Building Fund, as well as private finance. Understanding how grant, loans and internal resources fit together will be central to scheme viability and to managing risk in a higher-interest environment.
For boards and leadership teams, an early priority is to map how SAHP can support objectives around new supply, regeneration, net zero and resident outcomes, then align governance and resources around that.
Support from Thornton & Lowe
Thornton & Lowe already works with Registered Providers, councils and developers on funding bids, development strategy and wider social housing consultancy services. SAHP brings this work into a new phase.
Our services include:
- Bid writing and submission support for the Social and Affordable Homes Programme
- Grant application and contract management
- Support to become a Registered Provider
- Procurement and supply chain strategy
- Service charge reviews and estate services support
We understand how Homes England works and how to shape funding bids that stand up to scrutiny. We’ll work together with you to ensure that your submission has the best possible chance of success under SAHP.
Getting SAHP-Ready
With guidance now available and bidding expected to open from February 2026, the organisations that move early are likely to be in a stronger position.
Practical next steps include reviewing your current and planned AHP schemes, identifying where SAHP could extend or reshape your programme, and mapping opportunities against EMSA priorities and local housing needs. It will also help to decide which bidding route is right for you, test business plans around higher Social Rent delivery and firm up evidence, stakeholder support and delivery plans for your highest-priority schemes.
If you would like a structured conversation about SAHP, your pipeline and the support you need with bids or programme planning, our social housing team would be happy to help.
