Homes England uses new funding capabilities to give council £5m for housing regeneration scheme

Homes England has used new 'regeneration flexibilities' for the first time to award a £5m grant to Somerset Council for a housing regeneration programme that will see more than 200 new council houses built in North Taunton.

The housing and regeneration agency awarded the grant from the Affordable Homes Programme, which provides grant funding to support the capital costs of developing affordable housing for rent or sale.

Homes England is tasked with delivering £7.39 billion in funding to deliver up to 130,000 affordable homes by 2026 in England, not including London.

According to the agency, changes to the programme in June 2023 now enable funding to be used on replacement homes, alongside new affordable homes, as part of wider estate regeneration plans.

Jackie Jacob, director of affordable housing grants at Homes England, said: "This funding is the first grant allocation following the introduction of our new flexibilities to support our partners plans for estate regeneration.

"The Agency's new Strategic Plan objectives will support Somerset Council in its ambitions to regenerate North Taunton, an area with some of the highest social deprivation levels in the county.

"The North Taunton Woolaway Project is a signal of the funding open to affordable housing providers to accelerate the regeneration of social housing and help level up communities across the country."

Jacob encouraged all providers and local authorities to approach Homes England "as early as possible" if they need support to develop their proposals.

The agency will work with Somerset Council throughout the delivery phases of the project, which will first see 162 energy-inefficient homes pulled down.

The first phase will complete in 2024, with phase two due for completion towards the end of 2025.

Adam Carey