Authority Urged to Improve Ties with Local Councils, As Perceived by Homes England
The government's housing and regeneration agency, Homes England, has strengthened its role in supporting the UK's levelling up agenda, following a recent review and reform of its funding and relationships with local authorities.
The review's findings, published earlier in the week, were welcomed by Michael Gove who stated that Homes England is the right vehicle to deliver more affordable homes and support plans to regenerate towns and cities across the country. The government's 2025 Spending Review allocated £39 billion for the new Social and Affordable Homes Programme (SAHP), managed by Homes England, which will run for ten years with spending rising to £4 billion annually by 2029-30. This sizable funding boost supports the delivery of around 300,000 affordable homes over the next decade.
Peter Denton, chair of Homes England, has acknowledged that some of the review's recommendations are already being implemented. He believes that progressing with these changes could be transformational in how new homes are delivered and places are created. One such change involves Homes England working more closely with local authorities to tailor interventions to local housing needs. This is evident in pilot schemes such as the recently announced £19.7 million city council housebuilding pilot combining affordable and social rent homes.
Homes England is increasingly recognising local demand diversity, integrating housing growth with community assets and infrastructure, and avoiding imposing blanket targets. This shift towards collaboration and devolution of decision-making powers to local actors within Homes England’s remit is considered crucial for sustainable, inclusive regeneration aligned with levelling up goals.
However, the review also proposes changes in partnership with the DLUHC and Treasury, as certain recommendations would require adjustments to Homes England's funding arrangements, allowing it to commit to large, long-term schemes. Tony Poulter, a non-executive director for the Department of Transport, led the review and emphasised the need for the DLUHC to coordinate better with Homes England to ensure schemes run smoothly.
Peter Denton reiterates his commitment to always improve and ensure effectiveness and efficiency in driving forward the country's housing and regeneration ambitions. Despite facing backlash in the past, such as in 2023 when Homes England was forced to return funding to the Treasury due to budget constraints, Denton remains optimistic about the future. However, the cost-of-living crisis continues to squeeze budgets, and Homes England, like many other organisations, must navigate these challenges to deliver on its ambitious goals.
In summary, the review has cemented Homes England’s role as a key enabler of place-based regeneration that supports the government’s levelling up agenda by delivering locally-responsive affordable housing and fostering economic and social renewal through strategic partnerships with local authorities. As Homes England moves forward, it will continue to adapt and evolve to meet the changing needs of the communities it serves.
[1] Government announcement on Homes England review: https://www.gov.uk/government/news/homes-england-to-drive-forward-place-based-regeneration [2] Homes England's response to the review: https://www.gov.uk/government/publications/homes-england-response-to-the-peter-poulter-review [3] Policy analysis on Homes England's approach to regeneration: https://www.centreforcities.org/blog/homes-england-regeneration-policy [4] 2025 Spending Review: https://www.gov.uk/government/publications/2025-spending-review-and-national-implementation-plan [5] City council housebuilding pilot: https://www.gov.uk/government/news/city-council-housebuilding-pilot-to-deliver-affordable-homes
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