Sir Sadiq Khan is to commit £6 billion to new council and housing association homes across London, using a decade-long funding settlement as City Hall attempts to accelerate construction and tackle the capital’s housing shortage.
The Mayor said the investment would help deliver a “step change” in council housebuilding, with thousands of Londoners expected to benefit from new social and affordable homes.
The Government has confirmed £3.3 billion for London over four years to 2030, as part of its £39 billion Social and Affordable Homes Programme running to 2036. London’s overall allocation is £11.7 billion.
Mr Khan is using the longer-term funding guarantee to allocate £6 billion towards new homes over the full decade.
“Thousands of Londoners will benefit from this new wave of new social and affordable homes, which will help people out of temporary accommodation and provide good, affordable homes to live in for the long-term, as we build a fairer, better London for everyone,” he said.
Councils are expected to deliver more than half of the homes supported by the programme in London, as ministers attempt to reverse years of weak social housebuilding.
Housing Secretary Angela Rayner said: “Families can’t be left raising children without a place to call home and none of us should spend years waiting for somewhere safe and affordable to live.
“That’s why the Prime Minister and I are doing everything we can to get councils building once again – it’s fundamental to turning the housing crisis around, helping families out of temporary accommodation and into a secure home.”
The announcement comes as the Government faces mounting pressure to meet Labour’s 2024 manifesto pledge to deliver 1.5 million homes by 2029.
The Conservatives immediately attacked the funding arrangements, arguing that much of the spending has been pushed beyond the current Parliament.
Shadow housing secretary Sir James Cleverly said: “The small print shows homes won’t have to be delivered until 2039.
“The funding has been backloaded to fall outside the Spending Review and this Parliament, meaning Andy Burnham will never have to pay for it.
“Instead, it’ll be another cheque written by a Labour PM and left for future generations to cover.”
The Government has also announced almost £10 billion for housing projects outside London, with more than 70,000 homes to be delivered through 33 strategic partners.
The allocations include £529 million for 4,400 homes in Greater Manchester, £409 million for 3,200 homes in the West Midlands and £445 million for 3,400 homes in the North East.
West Yorkshire is set to receive £441 million for 4,000 homes, while Liverpool City Region will receive £380 million to support 3,100 homes. South Yorkshire has been allocated £249 million for 2,200 homes.
Sarah Elliott, chief executive of Shelter, said: “Today’s announcement puts councils back on the pitch in the fight to end homelessness.”
The Liberal Democrats, however, argued that the programme did not go far enough to address London’s housing pressures, with rents continuing to rise across the capital.
The funding announcement follows Ms Rayner’s move to accelerate housing development around busy Tube and railway stations, with schemes in designated areas set to benefit from default planning permission.
For City Hall, the latest commitment represents a major push to expand London’s social housing stock. For the Government, it is also a test of whether a heavily backloaded funding programme can translate into homes quickly enough to help meet its ambitious national construction target.
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