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United KingdomGOV.UK

Unregistered housing providers gain access to 95% grant drawdown

SAHP 2026–2036 payment flexibility requires a satisfactory guarantee dated before the first claim; eligible expenditure must already have been paid.

By Taxxa AI OyPublished 31 July 2026

Public Sector & Economy

Industry: Construction of buildings

Unregistered Bodies delivering under the Social and Affordable Homes Programme (SAHP) 2026 to 2036 can now use Homes England’s payment flexibility if a satisfactory Payment Guarantee has been completed and dated before their first grant claimGOV. Eligible providers can draw down up to 95% of their grant claim at acquisition or start on site, subject to funding availabilityGOV.

The revised Capital Funding Guide separates the two programmes. Unregistered Bodies and other partners, including new entrants or partners with deliverability concerns, remain ineligible for payment flexibility under the Affordable Homes Programme 2021 to 2026. Both for-profit and not-for-profit Registered Providers remain eligible. The express extension for SAHP is to Unregistered Bodies meeting the guarantee condition.

Finance teams must match claims to eligible development expenditure already incurred and paid. Committed but unpaid costs cannot be includedGOV. At the relevant milestone, the affordable-housing development cash flow recorded in Homes England’s digital system must exceed the grant tranche claimed. Further grant becomes due at the next relevant milestone, with a minimum final tranche of 5% at practical completionGOV.

The Payment Guarantee includes a Secured Amount limiting the maximum grant exposure at any one time. That amount must reflect the agreed allocation and delivery pipeline; acquisition and start-on-site payments count against it. Homes England must be satisfied with the guarantor and proposed amount, including the guarantor’s financial and commercial standing, financial covenant and due-diligence checks. Providers should arrange the guarantee before relying on the earlier drawdown in their funding plans. Providers must always refer to the definitive terms set out in their grant agreement with Homes England.

For Strategic Partnerships, claims remain restricted to development expenditure on an Active Site with an applicable secure legal interest. Grant cannot be paid ahead of need, and providers must certify this when claiming.

Continuous Market Engagement (CME) exclusions continue to cover Right to Acquire and Social HomeBuy purchases, HOLD and Off The Shelf products, pre-start Golden Brick arrangements, schemes involving Homes England land and Traveller Pitch funding. Specialist capital schemes funded separately by the Ministry of Housing, Communities and Local Government may qualify through separate approval. The revised exclusion list no longer names statutory Right to BuyGOV; providers should still check the applicable grant terms and other eligibility conditions.

Expenditure must relate to grant-funded affordable housing. Mixed-tenure costs require appropriate apportionment and sign-off by an independent consultant, Development Director or Finance Director.

The relevant provisions are Capital Funding Guide chapter 6, sections 4.2.3 and 4.3, within the financial-assistance powers in section 19 of the Housing and Regeneration Act 2008.

Before an Unregistered Body’s first SAHP claim, secure a satisfactory dated Payment Guarantee and reconcile the proposed drawdown with paid eligible costs and the guarantee limit.

Sources

6. Programme Management