Burnham backtracks on plan to spend housing fund only on social homes
Andy Burnham has dropped his proposal to divert the government's £10bn Affordable Homes Programme exclusively into social housing, with ministers confirming that around 40% of the initial funding will go toward sheltered housing and shared ownership schemes.
Andy Burnham has abandoned his proposal to overhaul the government's housing plans and direct the Affordable Homes Programme exclusively toward social housing. Ministers confirmed on Monday that the first £10bn from the 10-year programme will be spent on a mix of subsidised housing types across England, in line with the Starmer government's existing policy.
Around 40% of the initial allocation will now go toward housing types such as sheltered accommodation and shared ownership, rather than solely social rent homes. The decision marks a significant shift for the Greater Manchester mayor, who had previously called for the fund to be used entirely for building social homes to tackle the housing crisis.
The funding forms part of a wider £10bn package being distributed to regional mayors, councils, and housing associations across the country. Officials expect the programme to support the delivery of more than 70,000 homes, with over £2.5bn earmarked specifically for local mayors. Greater Manchester is set to receive £529m to build thousands of affordable homes.
The announcement represents the Prime Minister's first major spending commitment on a policy priority, though the money was originally set aside by his predecessor, Sir Keir Starmer. The government has framed the programme as a central element of its strategy to address housing supply and affordability across England.
Burnham had previously challenged councils to "build this country out of the housing crisis," urging local authorities to take a more active role in housebuilding. His earlier proposal to rip up the government's housing plans and prioritise social homes had generated significant attention, particularly in the north of England where housing pressure is acute.
The revised approach means that a substantial portion of the funding will support intermediate housing products, including shared ownership and sheltered schemes, rather than being restricted to social rent. This aligns with the government's broader objective of delivering a range of housing options to meet different needs and income levels.
The distribution of funds across regions and housing providers is expected to be confirmed in the coming weeks, with detailed allocations for individual areas still to be announced. The programme is designed to run over a decade, with the initial £10bn representing the first tranche of investment.
The government has emphasised that the programme will work alongside other housing policies, including planning reforms and measures to accelerate construction on stalled sites. Ministers argue that a mixed approach is necessary to deliver homes at scale and to address the variety of housing needs across the country.
