How Affordable and Social Homes Are Delivered

Key points

New affordable and social homes usually come through planning obligations on private schemes, land-led schemes with grant, or developer partnerships.
Grant is devolved: the Social and Affordable Homes Programme in England, Social Housing Grant in Wales, the Affordable Housing Supply Programme in Scotland and the Social Housing Development Programme in Northern Ireland.
In England, programme grant cannot be used to acquire homes already secured through developer contributions such as Section 106.
Rules on how providers buy homes from developers differ by nation, so check the funder's guidance before agreeing a deal.
Land to Homes is a new venture that wants to plan affordable and social homes into schemes from the start with councils and housing associations.

How are affordable and social homes delivered?

New affordable and social homes are usually delivered in one of three ways: as part of a private development through a planning obligation, on land led by a council or housing association with public grant, or through a partnership in which a developer builds homes for a registered provider. Each UK nation runs its own grant programme and rules.

This guide is written for councils, housing associations and other providers. It sets out the main delivery routes, the grant programme in each nation, and where a land and development partner can help. The terms differ: England uses registered provider, Wales and Scotland use registered social landlord, and Northern Ireland uses registered housing association.

What is a Section 106 package deal?

Where a planning obligation requires affordable homes on a private scheme, the developer builds them and usually sells them to a registered provider or council. The price is negotiated as a package and normally reflects the rent or sale income the provider can expect, rather than open-market value. The obligation sets the number, type and tenure of homes and often the timing of handover.

In England, homes secured this way are normally delivered without grant. The Homes England prospectus for the Social and Affordable Homes Programme says its funding cannot be used to acquire social and affordable homes secured by developer contributions, although it expects partners to buy such homes where they can. Since December 2024, Homes England has also run a Section 106 Affordable Housing Clearing Service, where housebuilders in England can list affordable homes they have permission to build but have not sold, so that registered providers and councils can find them.

Wales uses Section 106 in the same way. Scotland secures affordable homes on market sites through Section 75 agreements or conditions, and Northern Ireland secures social housing via planning gain through a Section 76 agreement or a planning condition. Our guide to Section 106 and affordable housing covers the obligations themselves.

What are land-led and developer-led schemes?

In a land-led scheme, a council or registered provider owns or buys the land and commissions the homes, often through a design and build contract and usually with grant. In a developer-led scheme, a developer brings forward its own land and sells completed homes, or a whole scheme, to the provider. England's programme recognises both: its strategic partnership routes included a land-led route for registered providers delivering at scale and a developer delivery route for developers selling homes to registered providers, often on a turnkey basis at practical completion.

The rules on buying from developers differ. In Wales, Social Housing Grant can fund the purchase of homes from private developers, and homes bought off the shelf must meet the Welsh Housing Quality Standard 2023 as a minimum. In Northern Ireland, Department for Communities guidance lists routes such as new build, design and build through competitive tender, and off-the-shelf purchases, but says design and build package deals, where land is sold only with a construction contract attached, are not acceptable on procurement grounds. Always check the current guidance for the nation and the funder.

Which grant programme applies in each nation?

Nation	Main programme	Run by	Who receives grant
England	Social and Affordable Homes Programme 2026 to 2036	Homes England, and the Greater London Authority in London	Registered providers, councils, housebuilders and developers, charities and community-led groups; rented homes must end up with a registered provider
Wales	Social Housing Grant	Welsh Government	Local authorities and registered social landlords
Scotland	Affordable Housing Supply Programme	Scottish Government, with funding planned by council area	Councils and registered social landlords
Northern Ireland	Social Housing Development Programme	Northern Ireland Housing Executive, with funding from the Department for Communities	Registered housing associations

What does England's Social and Affordable Homes Programme fund?

The government describes the programme as a £39 billion investment running from 2026 to 2036. The Homes England prospectus says it expects at least 60% of the homes it funds to be for social rent. It also funds affordable rent, which can be set at up to 80% of market rent, shared ownership and rent to buy.

Homes England's strategic partnership round closed in April 2026, and bids are now made through continuous market engagement, either scheme by scheme or as a portfolio. Unregistered bodies such as developers can bid, but must pass ownership and management of rented homes to a registered provider. In London, the Greater London Authority runs its own prospectus for the programme.

How do Wales, Scotland and Northern Ireland plan their programmes?

Wales: Social Housing Grant pays for homes for social rent, intermediate rent and shared ownership, and can cover buying land, building new homes, buying existing homes and converting buildings. Schemes must fit the local authority's strategic housing priorities and pass Welsh Government technical scrutiny.

Scotland: the Affordable Housing Supply Programme funds homes for social rent, mid-market rent and low-cost home ownership. Funding is shared out through Resource Planning Assumptions for each council area, and the Scottish Government is committed to delivering 110,000 affordable homes by 2032, at least 70% of them for social rent.

Northern Ireland: the Social Housing Development Programme is a three-year rolling programme. The Housing Executive assesses need and manages the programme, while housing associations find sites and bid for schemes each year, with support from the Housing Executive's area planners. That support does not guarantee project approval.

What makes a site work for affordable and social housing?

Evidence of need: homes that match the housing register or assessed local need in size and type.
Location: good access to transport, schools, shops and health services.
Design standards: each nation and many funders set their own, such as the Welsh Housing Quality Standard and the Department for Communities design standards in Northern Ireland.
Planning progress: funders often want schemes to have reached a defined planning stage before they commit.
Early agreement: settling tenure mix, specification and price before a planning application avoids redesign later.

How can Land to Homes work with councils and housing associations?

Land to Homes is a new venture within the S&K Group, a construction and property group. We buy land and partner with landowners across England, Wales, Scotland and Northern Ireland, and we want to plan affordable and social homes into schemes from the start. Depending on the nation and the partner, that could mean Section 106 homes on a mixed scheme, homes built to a registered provider's specification, or bringing land forward for a land-led scheme. We do not yet have completed schemes, so we prefer early, open conversations about specific sites.

Frequently asked questions

Can a private developer bid for affordable housing grant in England?

Yes. The Homes England prospectus for the Social and Affordable Homes Programme welcomes bids from housebuilders and developers as well as registered providers and councils. An unregistered body can bid to develop homes for rent but must pass ownership and management to a registered provider. In Wales, Scotland and Northern Ireland, grant is generally paid to councils and registered social landlords or housing associations rather than to developers.

Can grant be used to buy Section 106 affordable homes?

In England, Social and Affordable Homes Programme funding cannot be used to acquire social and affordable homes secured by developer contributions, although Homes England expects partners to buy such homes where they can. Rules elsewhere depend on the funder and the scheme, so councils and housing associations in Wales, Scotland and Northern Ireland should check the position with their grant officer before agreeing a deal.

What is the difference between social rent and affordable rent?

In England, social rent is set using a government formula and is usually the lowest rent level, while affordable rent can be set at up to 80% of the current market rent. Other nations use different terms: Scotland funds mid-market rent alongside social rent, and Wales funds intermediate rent. Each tenure has its own eligibility and allocation rules, which the council or housing association sets out.

Does Land to Homes have homes ready for councils or housing associations now?

No. Land to Homes is a new venture and has no completed homes available yet. We are looking for land and partners, and we want to talk to councils and housing associations early about sites where affordable and social homes could be part of the plan, so that tenure, design and funding can be agreed before a planning application rather than after it.

Sources

This guide is general information about how land and housing processes usually work. It is not legal, tax or financial advice. Rules differ between England, Wales, Scotland and Northern Ireland and change over time, so take advice from a solicitor, accountant or land agent on your own situation.

How affordable and social homes are delivered across the UK