Homes England has launched its 2026/27 Compliance Audit programme, with selected organisations now being contacted with details of this year’s audit requirements. The programme is a key part of Homes England’s assurance framework and is designed to verify that grant recipients have complied with Homes England policies, procedures, funding conditions in line with the grant agreements and the Capital Funding Guide.
For grant-funded affordable housing providers, the audit is more than an administrative exercise. It tests whether schemes have been delivered in line with programme requirements, whether supporting evidence is complete and accessible, and whether information submitted through Homes England’s Investment Management System (IMS) can be reconciled to provider records.
Homes England’s increased focus on compliance reflects the scale of public investment in affordable housing and the growing expectation that grant recipients can demonstrate robust governance, accurate reporting and clear audit trails. Menzies’ 2026/27 Compliance Audit briefing notes that not all developing organisations in receipt of grant funding will be selected each year, but those selected for the 2026/27 programme received notification in May 2026.
Key Features of the 2026-27 Compliance Audit Programme
Who is in scope?
The Homes England Compliance Audit applies to organisations receiving funding under Homes England affordable housing programmes in England. Standardised checks are carried out on schemes or sites that have selected Homes England funding under current and previous affordable housing programmes.
For 2026/27, Homes England has published separate checklists for:
- Schemes delivered through Strategic Partnership contracts
- Schemes not delivered through Strategic Partnership contracts
The Strategic Partnership checklist applies to schemes delivered through Strategic Partnership contracts under the Shared Ownership and Affordable Homes Programme 2016 to 2021, the Affordable Homes Programme 2021 to 2026, and the Social and Affordable Homes Programme 2026 to 2036.
The non-Strategic Partnership checklist applies to a wider range of programmes, including the Affordable Homes Programme 2015 to 2018, Shared Ownership and Affordable Homes Programme 2016 to 2021, Affordable Homes Programme 2021 to 2026, Social and Affordable Homes Programme 2026 to 2036, Care and Support Specialised Housing Fund, Move On Fund, Next Steps and Rough Sleeping Accommodation Programme 2021 to 2024, and the Single Homelessness Accommodation Programme.
Timetable?
Selected providers should always refer to the timetable in their Homes England notification email, as Homes England states that the annual long-stop date is communicated directly to providers selected for audit. Public guidance also confirms that providers must complete system set-up steps at least five weeks before the long-stop date.
Providers and their appointed independent auditors can access selected schemes through the Compliance Audit system four weeks before the audit is scheduled to start. Independent auditors are expected to submit findings through the system within five weeks of the audit start date and before the long-stop date.
After the independent auditor has submitted findings, providers have 10 working days to respond through the Compliance Audit system. This is an important opportunity to review the findings and provide any additional explanation or evidence. If a provider does not respond within that window, Homes England will form its opinion based on the independent auditor’s findings alone.
| Process | Date |
| Notifications issued to grant recipient | 15 May 2026 |
| Grant recipients and Independent Auditors to complete system set up | 13 July 2026 |
| Audit findings submission deadline | 17 August 2026 |
| Audit reports issued | 29 March 2027 |
What will the audit cover?
The 2026/27 checklists cover the key stages and compliance requirements of grant-funded scheme delivery. The published checklist sections include:
- General scheme file requirements
- Development matters
- Post-development matters
- Sale requirements
- Rent requirements
- Empty Homes, where relevant
Homes England’s checklists are for information only. The actual audit is completed online through the Compliance Audit system, with questions requiring a response of yes, no or not applicable, supported by explanatory text where required.
The 2026/27 programme also introduces changes that providers should be aware of, including new audit questions covering rent, secure legal interest and valuation, additional input fields within the Compliance Audit system, updates to question wording and auditor guidance, and changes to dropdown selections within IMS.
Areas likely to come under scrutiny?
Recent compliance audit reviews have placed increased emphasis on the quality and completeness of evidence. In practice, providers should expect scrutiny of areas including:
- Evidence retention and completeness of scheme files;
- Accuracy of IMS reporting;
- Eligibility of expenditure;
- Procurement compliance;
- Grant claim reconciliation;
- Practical completion evidence;
- Scheme eligibility;
- Consortium oversight and governance.
Incomplete or unsupported evidence may lead to breaches, adverse gradings, enhanced monitoring and, in some cases, recovery of grant funding in part or in full. Homes England’s guidance confirms that audit reports assign providers a green, amber or red grade based on the number and severity of breaches recorded, and that Homes England has the power to reclaim grant, in part or in whole, and/or apply interest.
Why preparations matters
The Homes England Compliance Audit is a data-driven process, managed through the Compliance Audit system and linked to IMS. Providers therefore need to ensure that scheme records, grant claims, approvals, valuations, contracts, completion evidence and rent or sale documentation are complete, consistent and readily available.
Early preparation can help providers:
- Identify gaps before the audit begins;
- Resolve access issues with IMS and the Compliance Audit system;
- Clarify roles between the provider, development teams, finance teams and the independent auditor;
- Reconcile IMS submissions to financial and scheme records;
- Prepare evidence for higher-risk areas such as valuation, secure legal interest, rent-setting and practical completion;
- Support a timely and effective response to any audit findings;
- Provide assurance to boards, committees and senior leadership.
Homes England’s guidance also requires providers to ensure that the Compliance Audit report and any recommendations are brought to the relevant board, committee or leadership group. Providers must then certify board or committee acknowledgement through the Compliance Audit system within three calendar months of receiving the report.
HowMenzies can help
Menzies has significant experience providing grant-related audit, assurance and advisory services to the social housing sector, including support for individual and consortium grant recipients. Our team supports registered providers, local authorities and private developers with Compliance Audits, mock compliance audits, scheme file reviews, audit readiness support, benchmarking, sector insights and training.
Speak to Menzies’ specialist grant audit and social housing team. We can help you understand the 2026/27 requirements, assess your readiness and put a practical action plan in place before key deadlines arrive.
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