The grant, awarded through the Homes England Affordable Housing Programme, will support the Council’s plans to increase council housing provision and homes for social rent at two sites in the city, as part of its ambition to provide up to 1,000 new affordable council homes by 2029.
The news comes on the back of a visit to Sheffield by Minister of State for Housing and Planning Matthew Pennycook MP on Thursday (6th March). He was in the city to meet Sheffield City Council Leader Cllr Tom Hunt, Chief Executive Officer Kate Josephs, and representatives from housebuilding partners and Homes England Interim Chief Executive Eamonn Boylan.
They visited the Moorfoot site in the city centre to look at plans to develop it for residential use – as well as other city centre sites – over the next few years.
He also attended the Future of Council Housing Summit at Sheffield’s Cutler’s Hall, where Sheffield City Council and project leads Southwark Council hosted delegates from most of the 100 local authorities involved in the project to call on extra government support for the sector.
At our Newstead development in the Birley area, the £12m funding will support the Council to provide 41 homes and 36 flats for general needs at social rent and a further 35 houses will be delivered at Corker Bottoms, just off the Sheffield Parkway. The council are also bringing forward 12 houses for shared ownership at Corker Bottoms, alongside partners at Sheffield Housing Company.
The Council’s Finance and Performance Committee will now meet on Monday 17th March to formalise accepting the grant.

A CGI image of the Newstead estate

An image of Newstead estate where the development of new homes is due to take place.
The properties are just some examples of the work taking place to grow the Council’s housing stock as outlined in our ambitious city-wide Housing Strategy approved in October last year (2024).
The demand for social housing has never been higher.
Good quality homes are fundamental for enabling people to live happy, healthy lives. And these developments will help ensure everyone in Sheffield that requires social housing has access to the type of housing they want to live in, in great neighbourhoods which are clean, green and safe.
“Across the city we are working hard to increase the number of new homes in our city. Good quality homes are fundamental for enabling everyone to live happy, healthy lives.
“The government and Homes England have taken extremely significant, positive action to support councils to increase the building of council housing. Council homes transform lives and this grant will support our partnership working to increase affordable housing in city.”
Cllr Hunt, Leader of Sheffield City Council
“Sheffield City Council is proud to be one of the country’s largest social landlords. Council housing is a vital public service and creating good quality housing that people can afford is something we very much want to do.
“This funding will allow us to keep the rents on 112 new homes at social rent levels, significantly lower than market rents. Grants like this help us give tenants secure homes that families can afford for the long-term.”
Cllr Douglas Johnson, Chair of the Council’s Housing Policy Committee
“Increasing the supply of quality affordable homes, working hand-in-glove with local leaders and communities, is a huge part of what we do as the government’s housing and regeneration agency.
“Understanding the needs of local communities is vital and we’re delighted to be supporting Sheffield City Council to achieve their ambitions, including their aim to create up to 1,000 new affordable homes by 2029.”
Eamonn Boylan, Chief Executive of Homes England
Homes England was previously in Sheffield in September to look at housing growth projects outside of the council housing sphere.