West Midlands Mayor pushes to unlock £146m for social housing

West Midlands Mayor Richard Parker has said the West Midlands is ready to contribute to the national effort to boost the construction of new homes.

As of the end of the first quarter of the 2024/2025 financial year, the West Midlands Combined Authority (WMCA) has £146m in unspent and unallocated funds across its four housing programs.

Currently, these funds are not specifically allocated for social housing, but Mayor Parker has expressed a desire to work with Angela Rayner to unlock the £146m, enabling the West Midlands to deliver social homes and support its most vulnerable residents.

The message came via a letter to Deputy Prime Minister Angela Rayner.

It is estimated that around 2,000 housing units already in development could be converted into social homes.

In the letter to Rayner, Parker said: “Officers have already been working closely with local authorities and housing associations across the West Midlands in preparations for taking on a devolved Affordable Homes Programme. As a result of those discussions it’s clear that they’re ready to help us deliver more social rented homes.

“Currently these funds are not focussed on delivering social homes and given our shared agenda to build more, I would hope that you agree officials should explore unlocking this money so that we can deliver quickly for our community.

“Officers here at WMCA are ready to engage with your officials to explore a range of options which we believe could help us move further and faster.”

The need for affordable housing in the West Midlands is critical, with 20,000 residents currently living in poor-quality temporary accommodation and 64,000 households on the combined social housing waiting lists.

To date, the Combined Authority has managed four development grant funds and two revolving loan funds to support housing construction efforts.

While these initiatives have helped build over 7,000 homes, of which 26% are affordable, the Combined Authority has not yet met its housing targets and intervention rates.

Fluctuating property values, rising construction costs and the challenging economic situation, exacerbated by the COVID-19 pandemic, have made it challenging to achieve these goals, particularly on brownfield regeneration sites.

With a strong focus on social housing, Parker has pledged to build 20,000 new social homes by the end of the decade to help address the region’s growing housing crisis.