Housing Minister Matthew Pennycook MP has written to the social housing sector announcing that the groundbreaking £39 billion Social and Affordable Homes Programme is now open for bids.

He says in the letter:

“Taken together with the Spending Review package, we have now provided a decade of certainty across grant funding, rents, regulatory standards and clear ambitions for the sector. We are asking providers to take the next step now via bidding for SAHP to translate this certainty into ambitious delivery plans.

“By working together, we can ensure this becomes a reality: investing in existing homes so they are safe, decent and warm, and delivering the biggest increase in social and affordable homes in a generation. I look forward to continuing to work closely with you as we deliver a decade of renewal.”

You can read the full letter here.

The NHC warmly welcomes the new programme, which will enable members to plan the development of new homes with confidence and deliver the social and affordable homes that our communities desperately need.

We have worked closely with the Government and have consistently highlighted the importance of a long-term programme which prioritises social rent and includes flexibility on regeneration. We have put forward the case for greater devolution to make sure it meets local priorities and enables housing providers to collaborate on delivery through housing partnerships.

The Government has listened and the new programme – 70 per cent of which will delivered outside of London – picks up on the needs of the North. Some major changes include more funding for social rent – 60 per cent of the total fund – and greater support for regeneration. The grounds by which ‘additionality’ can be demonstrated have been  significantly expanded, and the new SAHP can fund a limited number of property acquisitions for regeneration purposes.

The new programme will be aligned to local priorities to a much greater extent. Each Established Mayoral Strategic Authority (EMSAs) will be able to set the strategic direction of the SAHP in their areas and establish programme priorities, including the types of property, tenure and individual sites that should be prioritised. In the North this will apply to Greater Manchester, Liverpool City Region, North East, South Yorkshire and West Yorkshire combined authorities.

Our briefing on the Social and Affordable Homes Programme prospectus can be viewed here. The prospectus provides further detail around how the fund will be delivered now that bidding is open.

This week the government announced a series of major housing policy announcements, ending significant uncertainty around future regulatory requirements and rental income. These announcements include confirmation about how rent convergence will be implemented throughout the 2026 – 2036 rent policy period and the government’s response to major consultations on a new Decent Homes Standard and Minimum Energy Efficiency Standards.

Read our full member briefing here. 

 

Rent convergence

On rent convergence, the government confirmed that convergence would be implemented  through a phased approach, but would landlords would not be able to implement convergence from April 2026. Instead, convergence will be permitted for the financial year beginning from April 2027 at £1 per week, before rising to £2 per week from 2028 and for the rest of the ten year rent period.

Convergence will also only be permitted to formula rent level, rather than the additional 5% (or 10% for supported housing) that providers are able to charge in some circumstances.

 

Decent Homes Standard

The government also published their response to the previous consultation on a new Decent Homes Standard, with some major changes to the proposals after sector feedback.

Following consultation, the government are not progressing with previous proposals to mandate floor coverings as part of the Decent Homes Standard, or extending the purview of the Standard to include elements of the wider public realm beyond the home.

The below table shows a summary of the requirements for each Criterion within the new Decent Homes Standard, which will apply to all rented homes, in both the private and social rented sectors, from 2035.

 

Criterion	Requirements
Criterion A – A home must be free of the most dangerous hazards	•        Properties must be free of ‘Category 1’ hazards as assessed under the Housing Health and Safety Rating System (HHSRS).
Criterion B – A home must be in a reasonable state of repair	Homes will fail this criterion if: •        One or more key building components is not in a reasonable state of repair, or •        • Two or more other building components are not in a reasonable state of repair.
Criterion C – A home must provide core facilities and services	Flats must provide at least 3 of the following: •        A kitchen with adequate space and layout •        An appropriately located bathroom and WC •        Adequate external noise insulation •        Adequate size and layout of common entrance areas for blocks of flats   Houses must provide at least 2 of the following: •        A kitchen with adequate space and layout •        An appropriately located bathroom and WC •        Adequate external noise insulation All homes must also be equipped with: • Child-resistant window restrictors (overrideable by an adult) on all windows that present a fall risk for children.
Criterion D – A home must provide thermal comfort	•        Homes must provide a reasonable degree of thermal comfort, including meeting Minimum Energy Efficiency Standards.
Criterion E – A home should be free of damp and mould	•        Homes will be non-decent if a landlord has not remedied damp and mould.

 

Minimum Energy Efficiency Standards

Finally, new Minimum Energy Efficiency Standards for the social rented sector, which will form a core part of Criterion E of the Decent Homes Standard, were also published.

The government had originally proposed that properties would need to align with two of three metrics, covering a building’s fabric, heating system and smart readiness, by 2030. This has been reduced in scope following consultation, so properties will now need to be compliant with one of the three metrics by 2030, and with two metrics by 2039. Providers will be able to apply for a “time-limited spend exemption” of ten years if they have incurred £10,000 of spend on an individual property’s energy efficiency upgrades and it still cannot be made compliant with the Standards.

There will also be an extended transition arrangement introduced, whereby all properties that achieve EPC C on the current system by 2030, will be considered compliant with MEES until their energy performance certificate needs renewing.

You can read the full details of the outcome of the MEES consultation here.

This comes on the back of the government publishing the Warm Homes Plan, laying out £15 billion worth of public investment to improve the energy efficiency of 5 million homes between now and 2030. You can read more about the Warm Homes Plan here.

NHC members will receive a full detailed briefing on all of these announcements in the coming days. Welcoming the announcements, the Northern Housing Consortium’s Chief Executive, Tracy Harrison, said:

“Today’s package of announcements will give Northern social housing providers long term financial and regulatory certainty and is warmly welcomed by the NHC. It will help our members to deliver warm and safe homes across the North.

“The Government has listened to and responded to feedback from NHC members on the new Decent Homes Standard and Minimum Energy Efficiency Standards. The new standards take on board consultation findings, and, as a result, are more practical to implement and will improve the quality of homes across the North. 

“The NHC and other sector bodies called for the introduction of rent convergence to unlock greater investment in new and existing homes. The rate the Government has put forward balances the need to invest in homes while ensuring rents remain affordable to residents. This, alongside today’s announcement that low interest loans will be available to northern housing associations, and the transformational £39bn ten-year Social and Affordable Homes Programme, will enable our members to build many more homes in the North.

“We look forward to continuing to work closely with the Government to support NHC members to deliver the homes Northern communities need.”

 

Check out our member briefing that brings together the key takeaways from these announcements, highlighting what they mean for housing providers and professionals across the North of England.

If you have any questions, or would like to discuss any of these policy changes in more depth, please contact ​Tom Kennedy, Senior Policy and Research Manager.

We have strengthened our leadership team with two new board members, Chief Executive of Pickering & Homes and Chair of the Hull and East Riding Housing Partnership, Claire Warren, and Chief Executive of Calderdale Council and President of Solace, Robin Tuddenham.

Saqib Saleem, Manningham Housing Association’s Director of Operations joins as a Board Associate through the NHC’s non-executive director (NED) leadership development programme, which offers training, mentoring and board-level exposure to support the development of rising stars from diverse backgrounds within the sector. The programme, devised with support from the Housing Diversity Network, aims to increase board diversity by bringing in a wider range of skills and life experiences including filling professional skills gaps within the NHC Board Committees.

We’re also pleased to welcome back Catherine Wilmot as Executive Director of Finance, Governance and Improvement. Catherine is a familiar face at the NHC having previously been Executive Director (Finance and Operations) between 2018 and early 2024.

The new recruits join us at a pivotal time. Over the past year, Government investment in social housing has grown significantly, and devolution has deepened with increasing powers for northern metro mayors. After successfully campaigning for change, the NHC’s focus is now on supporting members to deliver Government ambitions, including through Housing Partnerships that work closely with mayors across the North. The NHC has also launched Renew, an inquiry looking into how housing-led regeneration can drive growth and support communities across the North.

Northern Housing Consortium Chief Executive Tracy Harrison said:

“I’m pleased to welcome Claire, Robin and Saqib to the board. It’s a privilege to have a board which offers such fantastic insight and expertise. It’s particularly exciting to welcome Saqib as the first participant in our NED training programme. It’s vital our board is representative of our membership, and communities in the North. It should include people from diverse backgrounds with different life experiences to make sure a wide range of perspectives are represented. We will continue to run the programme and hope it will empower people to take their first steps into non executive leadership roles.

“It’s also great to welcome back Catherine, who has contributed so much to the NHC. It’s testament to the strength of our culture that she decided to return. Catherine and the new board members will be instrumental in helping us deliver our new corporate plan.”

Executive Director of Finance, Governance and Improvement Catherine Wilmot said:

“I’m really pleased to return to the NHC. We have a fantastic team of colleagues who are committed to our mission to make sure everyone has access to a safe, warm home they can afford in a place they’re proud of. It’s a friendly and supportive place to work and there’s a positive and welcoming atmosphere.”

Housing Diversity Network Chief Executive Mushtaq Khan said:

“We were delighted to work with NHC on this recruitment process. We’re firm believers that inclusive and diverse recruitment is about investing in the future leadership of organisations and opening doors that have historically remained closed. Our programmes aren’t just about opportunity — they’re about equity, representation, and ensuring that the communities we serve can finally see themselves reflected at every level of the housing sector.”

You can find out more about the NHC board here.

NHC Executive Director (Policy and External Relations) Patrick Murray explains more about this corporate plan objective, including how we represent members, and the approach we take to working with the Government. He looks at how we’ve been moving the dial over the first 18 months of the Government and the momentous policy change we’re seen as a result.   

Changing Government policy is not easy. So what does “moving the dial” look like in practice? 

The first thing to say is it’s never one organisation. To have any chance of impact Government needs to hear the same thing from multiple places. We always work with and represent our members – social housing providers, local authorities, and Mayoral Combined Authorities – as well as working with other bodies such as the Northern Housing Partnerships and with national organisations where it’s appropriate.. We listen to resident’s voices too, as they are a powerful agent for change. In short, strength in numbers is always key to success. 

With a remit to speak on behalf of Northern cross-sector membership we focus our influencing work clearly on policy areas where there is a northern angle, it’s important to our members, and there’s a chance of success. By focusing strategically this means we can really get into the depth required to achieve change. 

For us at NHC over the last 18 months that’s meant a real focus on ensuring funding works in a way that supports delivery across the North. It is vital for Government to understand that monolithic national programmes will not deliver the impact they want if they are not set up to work across the multiple different housing markets there are in this country and have the flexibility to respond to the myriads of housing crises we have. When lobbying for the North, you’ve always got to be mindful how easily Whitehall and Westminster default to a London-centric view of the world, and how seductive the levers of centralised power appear to be (though they rarely work as intended in reality). 

Different Government stakeholders will need different things to help shift positions. That’s why at the NHC we talk about a twin-track approach. Politicians want to know how they can fulfil manifesto pledges and deliver for voters. It’s our role to show them how the social housing sector can support them to deliver their ambitions while inspiring them to go further with policies which will have a positive impact in the North. But we also need to focus on the depth of research, insight and detail needed to support civil servants to advise ministers on the best course of action, and shape how they implement policy.  

For example, we worked closely with the Mayoral Combined Authorities on the challenges around the Brownfield Housing Fund. Our in-depth research, Brownfield First showed we can build up to 320,000 homes on brownfield land in the North but the way funding was designed was holding us back. In particular we found the way Treasury’s Green Book rules were being implemented made it difficult to get homes built on brownfield sites. 

As the NHC’s Northern Housing Monitor has consistently shown, the North has more than its fair share of older, colder homes. Building on our track record including the ground-breaking Social Housing Tenant’s Jury, we brought together providers, local authorities, Mayoral Combined Authorities, and the supply chain to explore how we could deliver a new generation of good green jobs and tackle rising bills. Again, devolution of funding was a vital component to support partnerships, alongside longer-term funding cycles. 

Finally, the Social and Affordable Homes Programme. For years many areas of the North were locked out of the grant funding needed to build social rent. Stop-start programmes halted delivery. And regeneration was an afterthought at best, and a non-starter in truth. So our research on regeneration from earlier in the year was designed to set out the challenges around end of life stock in the North while demonstrating how by tackling this issue we could unlock more delivery. Working closely with the North’s Housing Partnerships was critical to get the granular data needed. 

This research all came together in our detailed Spending Review response, setting out what the North needed across multiple fronts. Backed by the North’s Housing Partnerships and based on extensive member engagement over the years, we were able to put forward a strong case for the North. 

But research alone doesn’t cut it. The right engagement with the right people is critical. We met with Ministers and put forward the case for the North at every opportunity including alongside national bodies.  

As ever though, the maxim of “show, don’t tell” proves most powerful. Over the first 9 months of the new Government we took all the key senior civil servants out across the North to see the issues on the ground. We saw new development, work on existing homes including retrofit, and regeneration in all its forms. They talked with members and residents about what was needed, engaging in Chatham House conversations which helped shape policy. We held bespoke roundtables and in-depth briefings on key research to support the civil service teams to design policy.  

In short, it’s a pincer movement. Ministers heard clearly what was needed from the NHC and our members, and from their civil servants. We worked closely with civil servants to equip them with insight and data, and to make sure they had seen the issues on the ground. This gave them the confidence to put forward the solutions that the sector needs to deliver. If the sector, civil servants, and politicians are all pushing in the same direction that’s when you have a chance of success. 

When we set out on this journey to influence the shape of the then new Government’s policy programme, we knew it wasn’t just about the money, but about how the money worked. 

The results are there to see, not least in the prospectus of the £39bn Social and Affordable Homes Programme. Regeneration flexibilities retained and broadened with real changes to the technical detail on “net additionality” rules that will have a major impact for northern providers. A ten-year programme with social rent as the priority. 70% of the money available outside London, a record high. And a real role for Mayors to set the strategic direction and allow more flexible delivery locally.  

But also increased brownfield funding through the National Housing Delivery Fund, devolved to Mayors, and underpinned by significant changes to those Treasury value-for-money rules that have held us back for so long. We still await the Warm Homes Plan, but we know there will be more money for retrofitting our social housing, funding will be devolved in this Parliament, and funding windows will be longer than previous cycles.  

What’s more we were delighted to see the revised £5bn Pride in Place programme to improve places building on NHC Pride in Place research directly with communities from a couple of years ago. This showcased the power of resident voice to shape policy – but also that influencing Government policy is sometimes a long game. 

So what’s next? Renew, our inquiry into housing-led regeneration in the North backed by Homes for the North and Muse, will be our main focus over the next 18 months. Our Call for Evidence is out now – please do respond by 27th February 2026. We’ll be engaging widely with the sector including the North’s Housing Partnerships and undertaking a programme of resident engagement.  

As ever, the ability of the North to achieve real policy change rests on us all working together and speaking with one voice about what is needed.