Two thirds of new Brownfield Housing Fund allocated to the North
The Government has announced an additional £150 million for the Brownfield Housing Fund (BHF) to accelerate regeneration of derelict and underused land across England. This new round of funding is designed to unlock stalled sites and deliver new homes, reinforcing the Government’s commitment to a “brownfield-first” approach. Bidding for the new funding will open in February 2026.
The NHC has consistently highlighted the importance of brownfield development in the North, with our Brownfield First report finding there is capacity for 320,000 new homes on brownfield land in the North. We welcome the news that 69% of the fund has been allocated to northern Combined Authorities reflecting the opportunity to develop derelict and unused sites in the North.
In our research we argued that benefit cost ratios used to access funding bids were disadvantaging areas with lower land values, which disproportionally impacted the North. The Government has since updated its Green Book spending guidance. This should address the issue and mean more brownfield sites can be developed in economically deprived areas – potentially transforming these communities.
Brownfield Housing Fund 2025/26 settlement – subregional break down :
| Strategic Authority | BHF allocation |
| West Midlands | £26,114,324 |
| Greater Manchester | £25,831,336 |
| West Yorkshire | £21,043,990 |
| East Midlands | £19,725,709 |
| North East | £17,629,948 |
| Liverpool City Region | £13,895,370 |
| South Yorkshire | £12,326,576 |
| York & North Yorkshire | £7,309,794 |
| Tees Valley | £6,122,946 |
| North | £104,159,960 |
| Total | £150,000,000 |
This builds on previous rounds of the BHF worth a total of £600 million since 2020.
Alongside this, the Government published indicative spends for Established Mayoral Strategic Authorities as part of the £39 billion Social and Affordable Homes Programme. These are separate from the Brownfield Housing Fund, but they complement brownfield delivery by providing additional resources for housing development and regeneration. Regional indicative spends include:
- Greater Manchester: £1.8 billion
- West Midlands: £1.7 billion
- North East: £1.1 billion
- West Yorkshire: £1 billion
- Liverpool City Region & South Yorkshire: £700 million each
Contracts for BHF projects must be signed by March 2026, with housing starts expected by 2028/29. MHCLG have requested that Registered Providers now be prepare their pipeline of brownfield sites so they can engage with Strategic Authorities to secure inclusion in regional bids and monitor guidance for detailed bidding criteria in early 2026.
The Government’s message to the sector is clear:
“Go big, go bold, go build – this funding is about transforming derelict land into thriving communities.” – Steve Reed, Secretary of State for Housing, Communities and Local Government
