The Government recognises the acute need for new social housing supply in areas of high demand, and is committed to delivering these in a timely and cost efficient manner.
Under Delivering Homes, Building Communities, the Governments priority is on accelerating delivery through the optimum use of public land, increased capital investment, and continued collaboration with housing delivery partners.
On 3 June 2025, after careful evaluation, my Department decided not to proceed to contract award for Social Housing Bundle 3 through Public Private Partnership. This decision was made due to the overall costs for the project being considered too high.
As was stated at that time, my Department and the relevant local authorities remain fully committed to delivering the social housing that the Social Housing PPP programme was designed to provide through an alternative direct delivery strategy.
The sites originally selected for Social Housing PPP Bundle 3 are currently being procured by the responsible local authorities, through a Design & Build model. I have provided funding approval for all these sites through the Social Housing Investment Programme – SHIP.
In light of the high tender costs for PPP Bundle 3, my Department initiated, with the assistance of the NDFA, a review of PPP Bundles 4 to 7 to determine the most appropriate procurement and delivery strategy in order to ensure the most efficient and effective use of the available public resources.
This review of PPP Bundles 4 to 7 has confirmed that the traditional PPP structure would yield similarly high costs. To ensure expeditious delivery of homes on the 28 sites impacted, I have approved a recommendation to deliver the 2,981 homes associated with these sites by way of Local Authority direct delivery.
Moving forward, I have instructed my Department to continue to evaluate all delivery methods and funding models in order to ensure that the output of new build social homes can be maximised and delivered as efficiently and effectively as possible.