Eastleigh Borough Council secures £154m for social homes

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Hundreds of social rent homes are expected to be delivered under a £154 million deal, but questions remain over whether it will speed up existing schemes.

Eastleigh Borough Council has secured the funding from Homes England to support 1,042 homes over ten years, including 784 for social rent and 258 for shared ownership.

The authority is one of only three councils selected as a strategic partner by Homes England under its 2026–36 Social and Affordable Homes Programme.

The £154.4 million award will be managed across a pipeline of council-owned sites, rather than being permanently attached to a particular development or fixed number of homes at each location.

Sites expected to form part of the programme include One Horton Heath, Aviary Court, Wyndham House, Airey Place, Maple Place, Station Lane, Kings Copse Avenue, St John’s Road, Enterprise House and Hampshire House.

The council said 91 per cent of the 1,042 homes already had planning permission or were subject to a live planning application when its bid was submitted.

Cllr Steve Broomfield, Conservative for Fair Oak and Horton Heath, said the figure raised questions over how far the funding would unlock additional development.

He said: “Given that Keith House comments that 91 per cent of the planned homes already have planning consent or are subject to a live planning application, this announcement seems to look at funding construction that’s already planned.”

The questions come after the local authority’s borrowing rose to £620.1 million at the end of March, from £585.3 million a year earlier.

Its latest accounts show it paid £13.2 million in external interest during the 2025/26 financial year.

One Horton Heath is included in the latest programme, but the council said the grant is not attached to a fixed number of homes on the site.

The first Lower Acre phase consists of 381 homes: 101 for open-market sale, 148 market-rent homes, 92 affordable homes and 40 shared-ownership homes.

The council said the first homes are close to completion, the first shared-ownership home has been reserved, and the first affordable homes are being let.

No homes have yet been sold at the development.

But Cllr Broomfield said a 2024 plan had anticipated around 150 Lower Acre homes would be completed by the end of June.

He said: “To have the first homes, quantity unspecified, ‘nearly finished’ when we’re two thirds of the way through Q2- when another 43 homes were due – is a little disappointing.

“It remains to be seen whether this will worsen Eastleigh’s borrowing figures.”

Council leader Keith House said the funding would help more local people secure an affordable home.

He said: “We know how difficult it can be for people to find a good home they can afford in our borough.

“This £154.4 million will deliver 1,042 social and affordable homes and help more local people put down roots here.”

The council said each project would continue through its usual financial approval process, with Homes England grant forming part of a funding mix that could also include council investment and borrowing, rental income, and open-market and shared-ownership sales.

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