Regional mayors given funding boost to build new social and affordable homes

Regional mayors outside London, including in Greater Manchester, will be given greater funding and influence over the development of new social and affordable homes in their regions.

Six mayors, representing Greater Manchester, the West Midlands, Liverpool City Region, the North East, and South Yorkshire, are to be awarded a share of £7 billion from the government’s £39 billion Social and Affordable Homes Programme to support plans to address long social housing waiting lists.

Under plans, Mayors, working jointly with Homes England, will shape the course of action for new affordable housing funding in their regions, setting out ambitious plans for the types of homes that get built, sites prioritised for construction and how many suitable bids for grant funding could come forward in each area.

Housing providers will be required to demonstrate how their bids align with local priorities, accelerating delivery of homes that genuinely meet local needs, ranging from specialist housing for older people to community-led projects.

Homes England Chief Executive Amy Rees 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.”

Subject to suitable bids, which can be submitted from February 2026, Greater Manchester is anticipated to receive around £1.8 billion from the Social and Affordable Homes Programme. This funding for social housing sits alongside a further £25.8 million allocation for 2025/26 from the Brownfield Housing Fund.