The £46m programme, titled ‘Capacity to Build’, will fund the continuation of three existing schemes, helping councils with their social housing development ambitions.
The funding follows prime minister Andy Burnham’s pledge to deliver “the biggest council housebuilding programme since the post-war period”. The first of the three schemes to be extended is the Council Housebuilding Support Fund, which is delivered with Homes England. It provides revenue funding for early stage development activity to help councils bring forward bids to the Social and Affordable Homes Programme (SAHP).
As of January 2026, the fund had helped 44 councils to bid for the SAHP, enabling them to deliver up to 9,850 homes and accelerate the delivery of a further 1,700 homes over the 10-year programme. The Council Housebuilding Support Service will also be continued. It is delivered by the Local Government Association (LGA) and provides free support, advice and expertise to help councils deliver more homes. The scheme was launched in 2025 with an initial £12m. Finally, the Pathways to Planning graduate scheme, also delivered by the LGA, will be expanded.
The scheme helps councils recruit and retain graduates in specialist housebuilding roles, including surveying and construction project management. Pathways to Planning was launched in 2023 under the previous Conservative government with an initial £1.59m.
Mr Burnham said: “Councils built this country out of a housing crisis once before. Backed properly, and trusted to get on with it, they will do it again.”
Liam Robinson, chair of the LGA’s inclusive growth committee, said: “Councils have long called for a sustained return to building genuinely affordable homes and stand ready to work with government to deliver the revival in social housebuilding. “The confirmed allocation of the first phase of the £39bn fund and the increased Capacity to Build funding are positive steps to achieving this ambition. “Given the key role for councils in delivering these homes, it is crucial they remain at the heart of delivery.
“Mayors should work closely with local authorities in their areas to achieve the most from this money, with councils also having sustained access to preferential borrowing rates to support viability.”
The Capacity to Build programme was announced on Monday 25 August alongside the first wave of allocations to social landlords under the £39bn SAHP. A total of £9.58bn will go to 33 strategic partners outside of London.
This article courtesy of Inside Housing. www.insidehousing.co.uk
