The government has announced an additional £21.8million boost to its Council Housebuilding Support Fund (CHSF) to allow councils to bring forward more affordable housing plans.
Available until March 2029, the revenue funding will help local authorities build the skills, capacity and partnerships needed to develop strong bids for the Social and Affordable Homes Programme (SAHP).
Housing Secretary, Angela Rayner, said: “Councils will be at the heart of the biggest housebuilding revival in decades, but we know many lack the capacity and expertise to turn plans into reality.”
“This funding will help councils build the skills, capacity and partnerships needed to make the most of our historic £39billion investment.”
“By putting councils back in the driving seat, we’re helping more families find a safe, secure place they can call home.”
Through the CHSF, councils can now apply for funding to support housing pipeline development, knowledge and skills development, pre-development and enabling activities, partnership working and additional staffing capacity.
Funding decisions will be made from December 2026, with further bidding rounds in April 2027 and 2028.
By supporting work at an early stage, the fund aims to help councils unlock more housing opportunities, maximise social rent delivery and respond to local housing needs.
Shahi Islam, Director of Affordable Housing at Homes England, said: “The Council Housebuilding Support Fund is a strong example of how Homes England is enabling locally led housing delivery and helping councils unlock more affordable homes for their communities.”
“We will continue to lead engagement with councils, manage the application process and make investment recommendations to the Ministry of Housing, Communities and Local Government, helping local authorities turn housing ambitions into deliverable projects funded by SAHP.”
The additional investment forms part of the government’s wider £46million Capacity to Build support package announced in August 2026, building on the success of the fund’s first round in 2025.
CHSF will provide revenue funding to help around 75 councils to submit capital bids to SAHP. Councils also have access to capital funding via Right to Buy receipts, housing revenue accounts and borrowing via the Public Works Loan Board at a discounted rate.
