Apply for affordable homes funding through a strategic partnership
Understand the different types and requirements of strategic partnerships and check if you're eligible to apply for affordable homes funding.
Applies to England
Access grant funding through a strategic partnership
The Affordable Homes Programme 2021 to 2026 was launched in September 2020.
We have designed the strategic partnership framework for accessing grant funding for organisations that:
- have a strong delivery track record
- have ambitious development plans to build new affordable homes at scale and pace
To make an application, you need to contact us first to check if you are eligible.
Applications are now open. The deadline for submitting an application is midday on 18 May 2021.
Other ways to access funding
If your organisation is better suited to accessing grants on a scheme by scheme basis instead of using the strategic partnership route, read our guidance on Continuous Market Engagement (CME).
Case studies of existing strategic partnerships
Read about how partnerships have benefited other organisations.
Types of strategic partnership
There are four types of strategic partnership. The parameters for funding and requirements vary between them.
Not-for-profit strategic partnership
Not-for-profit registered providers can submit a proposal, either:
- as an individual organisation
- with another organisation of the same type as a joint strategic partnership – for example, another not-for-profit organisation
This includes our existing strategic partners.
To apply you must:
- deliver at least 1500 grant funded affordable homes in a joint strategic partnership, with each of the partners committing to a minimum of 500 homes
- start on site by 31 March 2026
- complete by 31 March 2028
- have an overall grant ask below £250 million
We will pay a single grant claim quarterly against the grant recipient’s eligible development expenditure incurred in arrears.
We will determine payment for activity by for-profit delivery partners based on milestones achieved – for example, start on site or practical completion.
Long term strategic partnership
If you are a current strategic partner, you can have the option to extend your proposal for another year where you meet the criteria below. The online form will give you this option, but the additional year is not compulsory.
To qualify you must:
- maintain your existing joint or sole partnerships (any delivery partners can change)
- deliver at least 4000 grant funded homes – or at least 1500 for each partner in a joint strategic partnership
- start on site by 31 March 2027
- complete by 31 March 2029
- agree to draw down all grant by 31 March 2026
- have an overall grant ask of less than £250 million
We will assess your application both in line with the parameters published for the £1 billion announced in 2018, and the criteria in this guide (please refer to the guidance issued at that time).
We will pay a single grant claim quarterly against the grant recipient’s eligible development expenditure incurred in arrears.
We will determine payment for expenditure by for-profit delivery partners based on milestones achieved (for example, start on site or practical completion).
For-profit strategic partnership
For-profit registered providers and developers with a strong track record of delivering new affordable housing supply can submit a proposal.
To apply you must:
- deliver at least 1500 grant funded homes
- achieve all starts on site and completions by 31 March 2026
- agree to draw down all grant by 31 March 2026
- have a grant ask below £150 million
A for-profit registered provider should not be entering into a joint strategic partnership with another for-profit registered provider. If you are considering this you should contact us.
We will make all grant payments to this type of strategic partnership quarterly in arrears against milestones achieved. See section 5 of the Capital Funding Guide chapter on strategic partnerships.
If you’re building homes for rent but are not a registered provider we will ask you to identify who will own and manage the homes on completion, before you enter into a contract.
Local authority strategic partnership
A local authority may bid for a strategic partnership alone or with another local authority.
To apply you must:
- deliver at least 1500 grant funded homes
- start on site by 31 March 2026
- complete by 31 March 2028
- agree to draw down all grant by 31 March 2026
- have a total grant ask below £150 million
We will pay a single grant claim quarterly against the grant recipient’s eligible development expenditure incurred in arrears.
Bidding for a joint strategic partnership
Partners can bid for a joint strategic partnership where they enter into a contract with us and one other organisation to deliver the agreed programme. There can only be two joint partners in a joint strategic partnership.
Joint strategic partners must agree to and submit the same grant rates by tenure and region in their proposals.
We do not expect a for-profit registered provider to enter into a joint strategic partnership with another for-profit registered provider. If you are thinking about this, you should contact us.
Including delivery partners in your proposal
There is an opportunity for a mix of types of organisation to access grants as delivery partners. Grants will be paid according to our usual practice with the type of delivery partner.
If your proposal includes working with delivery partners to help you deliver the housing, we expect you as the strategic partner to deliver a significant proportion of the homes yourself.
Existing contractual commitments
If you are a partner who secures funding in the Affordable Homes Programme 2021 to 2026, you must fulfil your contractual commitments under any existing grant agreement.
You cannot move any planned delivery into a new strategic partnership, and any flexibility, clauses or conditions are unique to these contracts and will not be automatically carried over.
We will begin new, separate contracts with strategic partners for 2021 to 2026, and all grants will need to be drawn down by 31 March 2026 against eligible activity.
Types of affordable housing this funding is for
Funding through a strategic partnership is for the supply of new affordable housing in these standard tenures:
- Affordable Rent
- Social Rent
- Shared Ownership, including Older Persons Shared Ownership
- Rent to Buy
- Supported housing for rent
We expect most delivery to be done through land-led development.
Funding is not available for:
- replacement of homes demolished through regeneration work - a grant may be available to support the delivery of net additional affordable homes on those schemes
- homes secured as developer contributions through a Section 106 or similar planning agreement
- gypsy and traveller sites, Home Ownership for Long term Disabilities or Empty Homes – these are funded through Continuous Market Engagement (CME)
Homes for Social Rent
We expect you to tell us how much Social Rent you’ll deliver.
This will be:
- the number of homes requiring a Social Rent grant rate that will only be applied to homes in areas of high affordability pressure
- the number of Social Rent homes to be delivered in other areas, where the grant rate applied will be at the same level as affordable rent
Older Persons Shared Ownership
If you’re building homes for Older Persons Shared Ownership these should be included in your Shared Ownership numbers and will attract the same grant rate.
Meeting the government’s objectives
As well as the delivery criteria listed in this guide, we’ll assess your proposal on how well you meet the strategic objectives of the fund.
These include:
- delivering at least 25% of the homes through Modern Methods of Construction (MMC)
- providing housing in rural areas
- providing supported housing
- working with small and medium-sized enterprises (SMEs)
- use of the national design guide and your approach to sustainability
- providing a proportion of homes for home ownership
The quantitative commitments you make on these objectives in your proposal will become contractual obligations that we will monitor.
Check you are eligible to apply
You need to:
- deliver at least 1500 affordable homes
- comply with all the published guidance and the requirements of the Capital Funding Guide
- be a Homes England investment partner
- be submitting either a standalone proposal or with one other organisation of the same type – you cannot participate in more than one strategic partnership
- have authorisation to submit this proposal including all data on another organisation’s behalf, if you’re working with them as a joint applicant or delivery partner
- take into account new government policy requirements alongside existing relevant policies and all statutory requirements for the grant funding
- agree, where appropriate, to us contacting the Regulator of Social Housing about your proposal
- take account of your obligations and liabilities and those to be taken on for organisations you are working with – depending on the structure of your proposal
If successful, you will need to enter into a grant agreement with us before any grant can be drawn down.
Contact us
Contact us if you want to express an interest in becoming a strategic partner and to check if you’re eligible so you can access the system.
Email: sp.application@homesengland.gov.uk
After you’ve expressed interest in applying for funding
We will acknowledge receipt of your expression of interest by email and keep you updated on progress regarding your eligibility to apply.
We’ll provide you with login details for the online application when bidding opens. When you have access, the main account holder can invite others within your organisation to set up an account.
Adding additional users to an application
All additional users must have a standard user ID email address from the applicant organisation.
If you’re eligible and meet the requirements
If your organisation can meet the requirements set out in this guide and you want to apply, you’ll need to submit your proposal using our online application process.
Read more about how to prepare your application
Applying in a joint strategic partnership
Each partner applying for a joint strategic partnership should apply for an account. Delivery partners do not need an account.
Updates to this page
Published 19 February 2021Last updated 8 April 2021 + show all updates
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Applications for affordable housing funding through a strategic partnership are now open.
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Added a link to the new Affordable Homes Programme 2021 to 2026 investment partner application forms.
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Added a link to a collection of Homes England strategic partnership case studies.
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First published.