Government Announces Extra £3bn for Affordable Homes Across England

The Affordable Homes Guarantee Scheme provides low-cost, flexible and long-term loans to help fund investment in new and existing affordable homes across England, including those for social rent, affordable rent and shared ownership.

The government has announced that 20,000 new affordable homes will be built across the country, helping more people into home ownership. This is being achieved by a £3 billion increase to the scheme.

The £6 billion fund will help housing providers access low-cost loans so they can expand their business, build more affordable homes and upgrade their existing stock. The total debt requirement should be not less than £5 million. The term of the loan can be up to 30 years.

Private Registered Social Housing Providers delivering homes in England may apply. The scheme will support proposals that will deliver new-build affordable homes, including those in existing affordable housing grant programmes.

As part of the scheme, providers will be able to apply for loans to help make homes fit for the future. These decarbonisation upgrades could potentially save tenants hundreds of pounds on their energy.

For the first time, the scheme can also be used to upgrade existing properties, making them warm and decent for tenants.

The scheme is open for applications until midnight on 30 April 2026.