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The use of long-term 鈥渟trategic partnerships鈥� between Homes England and major housing associations has not delivered significant additional value, according to an official evaluation of the government鈥檚 2016-21 affordable housing programme.

Homes England first launched its Strategic Partnerships procurement strategy with housing associations in 2018, under which it was supposed to agree to longer term funding deals and greater delivery flexibility for the partners, in return for them meeting broader targets, such as around MMC and design.

The report, commissioned by the Department for Levelling Up, Housing and Communities and carried out by consultant SQW, found that 鈥渢he level of 鈥榓dded value鈥� generated through the SP [strategic partnerships] model has been modest鈥� and that 鈥渢he creation of a more 鈥榮trategic鈥� relationship has not largely been realised鈥�.

The evaluation of the 拢4.2bn Homes England programme, which it said had only completed 27% of the total homes by March 2021, also said that it had had a 鈥渓imited effect on supporting the use of MMC鈥� 鈥� one of the goals of the strategic partnerships approach 鈥� and that overall there was 鈥渓imited success in realising the 鈥榓dded value鈥� element of the SP model鈥�.

However, Homes England said the partnerships had provided 鈥渋mportant benefits鈥�.

Strategic partnerships are ultimately targeted to deliver 42,000 homes under the 2016-21 programme.

The evaluation said that where grant recipients that worked through the other principal method of grant distribution, continuous market engagement (CME), were 鈥渓argely positive on systems and processes鈥�, around half of those working in strategic partnerships did not think the system worked well.

In addition, it said that the anticipated 鈥榝lexibility鈥� of the SP model, which was a key driver of becoming a 鈥渟trategic鈥� partner for many, according to the report, did not materialise, with 鈥渢he requirements [not] perceived as materially different than under scheme-by-scheme bidding鈥�.

However, it did find that the strategic partnerships model was recognised by 鈥渕ost鈥� partners as having 鈥渋nfluenced the scale at which they have delivered, or are committed to delivering, new affordable homes, with the certainty of funding and size of settlement through the SP supporting the scaling up of development programmes鈥�.

Both Homes England and the Greater London authority took on and expanded the use of strategic partnerships in the later 拢11.5bn 2021-26 affordable housing programme, with Homes England in 2021 saying that its 鈥渃urrent strategic partnerships have transformed the way we work with housing associations and proved a successful mechanism for scaling up the delivery of affordable housing鈥�.

A spokesperson for Homes England said strategic partnerships model had 鈥渁 number of important benefits鈥� and had contributed to the delivery of at least 130,000 new affordable homes and will deliver more through the Affordable Homes Programme 2021-26.