London to get up to £11.7 billion Social and Affordable Housing Programme

Investment in social and affordable housing in the capital will get a long-term boost through the government’s Social and Affordable Homes Programme, states London Councils. London will receive up to £11.7bn over ten years, 30% of the national total, to invest in building new homes for families on lower incomes.

Cllr Grace Williams, Deputy Chair and Executive member for Housing & Regeneration at London Councils, said:

“London is resolutely pro-housing growth. Since 2018, boroughs have directly started more than 25,000 new council-led homes.

“This investment – the largest ever for the capital in cash terms – will support us to build more of the social and affordable homes that our residents are crying out for. We welcome the long-term certainty that this ten-year programme provides, alongside the additional funding flexibilities for Right to Buy receipts.

“With 1 in 50 Londoners homeless and living in temporary accommodation, we know that more needs to be done to turn the tide against homelessness in the capital and across the country. Our city is the epicentre of the national homelessness crisis and the majority of homeless households in England are London families.

“Boroughs will continue to work together and with partners – including national government and the Mayor of London – to ensure we have the policies and funding needed to deliver social and affordable housing in the capital.”

London Councils continues:

'The 2021/26 Affordable Homes Programme allocated £4.16bn to London over 5 years (£832 million a year) in London. The new programme announced brings £11.7bn to London over 10 years, £1.17bn a year.

'The Spending Review confirmed a ten-year rent settlement for the social housing sector, with rents due to rise by CPI+1% a year. National government has also launched the consultation on implementing rent convergence, which London Councils has advocated for.

'This was a policy the government implemented between 2002 and 2015, and which established a national rent formula aimed at ensuring social housing tenants pay similar rents for similar properties, taking into account local incomes and property values.  In London this approach helped raise social rents and better reflected the costs of managing the capital’s social housing stock.

'Government has also announced further changes to Right to Buy, which will enable the receipts raised through council home sales to be used alongside Affordable Homes Programme grant funding. This has been a long-standing ask of London Councils.'