We remain unconvinced that the Department and Homes England have a strategic approach to allocating the NHDF to ensure a balanced portfolio of projects in a range of locations which support the objectives of the NHDF. The Department launched the NHDF without a pipeline of projects suggesting its approach to creating a portfolio of projects is reactive and demand led rather than strategically planned. This means there is a risk that the final portfolio does not contain a strategic balance of projects which support the objectives of the NHDF and maximise the impact of funding and value for money. In addition, we are not convinced a demand-led approach will lead to a balanced portfolio of projects across a range of locations. The Department has 10 Strategic Place Partnerships linked to Mayoral Strategic Authorities which will provide strategic direction in those places. The Department is aiming to work in partnership with local areas to align housing delivery with place-based growth strategies. The Department says the NHDF was deliberately designed to be flexible, and it considers a range of criteria when assessing projects and determining the best investment type, such as grants, loans or equity, but we are not satisfied that the Department has explained this process to us sufficiently well. recommendation As part of its Treasury Minute response, the Department and Homes England should clearly articulate how the NHDF will: 5 a. select and balance projects to maximise impact in a range of locations, in particular, those with Strategic Place Partnerships. b. decide which type of investment to make in projects to achieve the greatest impact and value for money.