Why SAHP Funding doesn't de-risk schemes, and what actually does

The Social and Affordable Homes Programme (SAHP) is a critical enabler of affordable housing delivery across England. By providing long-term capital grant funding, it allows housing providers and local authorities to bring forward schemes that might otherwise be unviable.

However, while SAHP funding improves viability, it does not remove risk. Development risk remains, and in some cases becomes more complex, particularly given long programme timescales, cost uncertainty, and evolving delivery conditions.

Understanding this distinction is essential. SAHP funding supports delivery, but it is robust scheme modelling that actually de-risks projects.

The Common Misconception About Grant Funding

There is a natural tendency to assume that once grant funding is secured, a scheme is “safe”. In reality, SAHP funding does not eliminate many of the risks that development teams continue to manage throughout the lifecycle of a project. 

These risks include: 

• Build cost inflation and market volatility 

• Programme delays and phasing changes 

• Cashflow timing and grant drawdown profiles 

• Changes to tenure mix or policy requirements 

• Pressure on margins over long delivery periods 

SAHP helps schemes proceed, but it does not insulate them from change.

Where Risk Actually Sits in SAHP-Funded Schemes

For most organisations, risk sits not in the existence of funding, but in how schemes perform over time.

Key questions development teams continue to face include:

• How resilient is the scheme if costs rise further?

• What happens if delivery is delayed?

• How sensitive is viability to changes in tenure or sales values?

• Can we demonstrate continued value for money as assumptions change?

Answering these questions requires more than a static appraisal at funding stage.

Why Robust Scheme Modelling Matters More Than Ever

SAHP is a long-term programme, and many funded schemes will be delivered over several years. During that time, assumptions will change.

Robust scheme modelling allows organisations to:

• Understand baseline viability before grant support

• Model how SAHP funding improves outcomes without masking risk

• Test multiple delivery scenarios as conditions evolve

• Stress-test assumptions around cost, programme, and income

• Maintain confidence in decisions throughout the scheme lifecycle

In short, modelling turns grant funding into informed delivery, rather than assumed certainty.

How ProVal Helps De-Risk SAHP-Funded Schemes

Proval is designed to support clear, transparent, and flexible scheme modelling for affordable housing developments, including those supported by SAHP.

Using Proval, organisations can:

• Model schemes with and without SAHP grant funding

• Test alternative scenarios as assumptions change

• Understand the impact of cost inflation, delays, or tenure changes

• Maintain consistent assumptions across updates and approvals

• Create a clear audit trail for governance and decision-making

Rather than relying on disconnected spreadsheets or static appraisals, teams can actively manage risk throughout delivery.

Example: Managing Risk Beyond Funding Approval

A registered provider secures SAHP funding for a mixed-tenure scheme on a constrained site. At approval stage, the scheme is viable and deliverable.

However, during pre-construction, build costs increase and the programme is extended.

Using Proval, the project team is able to:

• Update assumptions quickly and consistently

• Test the impact of cost increases on viability

• Explore alternative phasing and tenure options

• Understand whether the scheme remains robust with existing funding

This allows informed decisions to be made early, rather than reacting once pressures become critical.

Funding Enables Delivery, Modelling Enables Control

SAHP funding is essential. It makes many schemes possible.

But it is robust scheme modelling that:

• Provides clarity under uncertainty

• Supports confident decision-making

• Protects value for money

• Keeps schemes on track as conditions change

In an environment of rising costs and long delivery horizons, this distinction matters.

Conclusion

The Social and Affordable Homes Programme plays a vital role in affordable housing delivery. But funding alone does not de-risk development.

The organisations that deliver successfully under SAHP are those that invest in clear, consistent, and transparent scheme modelling, not just at funding stage, but throughout delivery.

Proval supports this approach, helping teams move from grant-led approval to confident, controlled delivery of affordable homes.