Timber Development UK has welcomed the announcement of nearly £10 billion of funding being allocated to build over 70,000 social and affordable homes across England.
The government announcement on 25 August 2026 is the first wave of funding under the Social and Affordable Homes Programme (SAHP) – a 10-year programme which will spend £39 billion in total.
David Hopkins, CEO of Timber Development UK (TDUK), said: "This news comes as a welcome relief for the market. The housing sector, and the supply chains that feed it, cannot wait any longer for investment to flow. It is high time the government allocated the capital – to let the industry get on with doing what it does best.
"The delay in encouraging demand has had catastrophic effects across the sector. Now is the time to focus on delivery of quality homes fit for the future. It's also great to hear that the government says it wants ‘skills development in Modern Methods of Construction' in this announcement. That's one of many ways in which timber is best placed to deliver these homes."
The government has announced the 33 delivery partners across the country that include councils, housing associations, housebuilders and other providers.
All the funding in this wave is outside London, in areas such as Greater Manchester, the West Midlands, the North East, West Yorkshire, the Liverpool City Region and South Yorkshire. And a further £16 billion of the SAHP funding remains to be allocated outside London over the ten-year period.
The government said it will prioritise social rent and council housebuilding going forward, in what it described as "the largest expansion of council housing in decades".
There are three councils among Homes England's 33 Strategic Partners: Cambridge City Council, Eastleigh Borough Council and Newcastle City Council. Ministers said the funding reflected "a major step in the ambition to getting councils building at scale again… helping put them firmly back at the heart of housebuilding."
Around 60% of the homes will be built for social rent. The government said the funding would help councils make full use of Right to Buy receipts and other available funding streams. According to ministers, in the last financial year, £1.61 billion was raised from Right to Buy sales.
The government will invest a further £46 million over the next three years to boost councils' skills, expertise and capacity, and aid them in housebuilding in the Capacity to Build programme. It is also looking to "raise the cap on funding for acquisitions so that councils can buy more homes".
"Devolution" was a key word in the announcement. This first wave of funding includes £2.45 billion for delivery in six Established Mayoral Strategic Authority (EMSA) areas outside London. This is to support the "individual priorities of mayors, who set the strategic direction of the programme in their areas."
