The Government has announced £21.8 million to strengthen council housebuilding teams, develop viable housing pipelines, and help local authorities secure funding through the Social and Affordable Homes Programme.
More councils will be supported to develop affordable housing projects under a new £21.8 million expansion of the Council Housebuilding Support Fund.
The revenue funding, available until March 2029, is intended to help local authorities acquire the skills, staffing capacity, and technical expertise needed to prepare strong bids for the Government’s Social and Affordable Homes Programme.
Around 75 councils are expected to receive support, with funding available for knowledge and skills development, housing pipeline planning, pre-development work, partnerships and additional staff.
Applications opened on 21 September and will close on 2 November. The first funding decisions are expected from December 2026, followed by further bidding rounds in April 2027 and 2028.
Councils placed at heart of housing delivery
Housing Secretary Angela Rayner said councils would be central to what the Government describes as the biggest housebuilding revival in decades.
“Councils will be at the heart of the biggest housebuilding revival in decades, but we know many lack the capacity and expertise to turn plans into reality,” she said.
“This funding will help councils build the skills, capacity and partnerships needed to make the most of our historic £39 billion investment.”
The fund is designed to address one of the persistent obstacles to council-led housebuilding: the shortage of people and resources needed to take a development from an initial proposal to an investable project.
By paying for early-stage work, the Government hopes more councils will be able to assemble credible development pipelines, maximise the delivery of homes for social rent and respond more effectively to local housing needs.
Shahi Islam, Director of Affordable Housing at Homes England, said the fund would enable “locally led housing delivery” and help councils convert their ambitions into projects capable of receiving capital investment.
Homes England will manage the application process, engage councils and make investment recommendations to the Ministry of Housing, Communities and Local Government.
Part of a wider capacity package
The additional investment forms part of the Government’s £46 million Capacity to Build package announced in August.
That package also includes free assessments and tailored support through the Local Government Association’s Council Housebuilding Support Services. The Pathways into Planning programme is separately intended to recruit 150 graduate planners between 2026 and 2029.
Councils can combine this assistance with other potential sources of capital, including Right to Buy receipts, Housing Revenue Accounts and borrowing from the Public Works Loan Board at a discounted rate.
Curia: capacity must be matched by infrastructure
The announcement reflects one of the central recommendations made by Curia through its Housing and Infrastructure Research Group: national housebuilding targets cannot be delivered without stronger capacity inside local government.
Curia has previously warned that skills shortages, constrained planning departments and fragmented decision-making risk creating a widening gap between government announcements and homes being completed.
Its research has called for sustained investment in council expertise, clearer and more predictable planning rules, and stronger collaboration between local authorities, Homes England, housing associations and developers.
However, additional staffing and bid-writing capacity alone will not resolve the housing shortage. Curia has argued for a place-based approach in which housing is planned alongside transport, energy, water, digital connectivity, public services, and access to healthcare.
Polling commissioned by Curia also found that public support for development increases when infrastructure is provided early. Its recommendation to government has therefore been consistent – they must lay the groundwork before laying the bricks.
The new fund should help more councils reach the starting line. The test will be whether successful bids are accompanied by the capital, infrastructure, and long-term certainty needed to turn local housing pipelines into affordable, sustainable communities.
Find out more about Curia’s Housing and Infrastructure Research Group
To find out more about Curia’s Housing and Infrastructure Research Group, please contact Partnerships Director Ben McDermott at ben.mcdermott@chamberuk.com
(Photo: Simon Dawson/No 10 Downing Street)