This piece of research challenges the current application by Homes England of the concept of ‘net additionality’ to major funding streams, including the Affordable Homes Programme (AHP).
This channels funding for new affordable homes to a very restrictive definition of ‘net additions’ to housing stock. As a result, brownfield sites that are already cleared of homes (moribund housing) are not eligible for funding, even if they are in areas that need to Level Up.
Similarly, effectively no funding is available for replacing very poor quality homes as part of wider place based regeneration schemes, making many transformative Levelling Up schemes unviable.
Our key recommendation is that these rules are revised to bring more homes into scope for replacement via the existing exception made for ‘moribund property’, which should be expanded and extended. This would enable the delivery of more homes, better quality homes, and support existing Government priorities of levelling up, maximising the use of brownfield land, increasing the energy efficiency of the housing stock and reducing carbon emissions.
Furthermore, amending the rule would also improve value for money from the AHP and enable more efficient asset management and development activity by housing associations.
