Mayor Secures £11.7 Billion for Affordable Housing in London
The Mayor of London has successfully negotiated £11.7 billion in government funding aimed at boosting the construction of social and affordable housing across the capital. This funding is part of the new London Social and Affordable Homes Programme (LSAHP) for the period 2026-2036, with the aim of facilitating thousands of new home developments in London by March 2036.
Funding and Programme Structure
The LSAHP is a key component of the Mayor’s strategy under the “Building More Homes” plan, which addresses growing housing demand in London. The funding will predominantly be used to support various housing types, with a specific emphasis on social rent. It is expected that at least 60% of the homes constructed through this programme will be reserved for social rent, helping low-income families who struggle to find affordable accommodation.
Additionally, the programme will also fund:
- Intermediate rent, including Key Worker Living Rent
- Shared ownership options
- London Living Rent initiatives
Continuity and Future Planning
Following the initial bidding round, the government and the Mayor will formalize the specific targets for the programme. Ultimate completion of homes funded through the LSAHP is expected by March 2039, ensuring a long-term vision for affordable housing in London.
Enhancements in Building Safety
The ongoing discussions with the Ministry of Housing, Communities and Local Government (MHCLG) have led to an emphasis on improved building safety standards as part of the funding conditions. Proposed regulations will restrict the use of combustible materials on the exteriors of all buildings, alongside requirements for advanced fire suppression systems, extending beyond national regulations.
Focus on Design and Inclusivity
The LSAHP will not impose strict design standards; instead, adherence to the London Plan policies will guide project specifications. Housing providers will be accountable for meeting minimum standards concerning design, safety, and inclusivity, which include training for employees on equality and diversity (EDI), and monitoring their workforce demographic.
Funding Allocation Process
The Greater London Authority (GLA) will allocate funds through a competitive bidding process based on criteria such as value for money and deliverability. Should additional funding become available, this will also be incorporated into the programme to maximize resources for affordable housing. A substantial focus remains on leveraging public land for further development.
Background
This initiative signals a concerted effort to tackle London’s ongoing housing crisis, which has seen a growing need for affordable units. The strategic programme and newly secured funds are critical in addressing the needs of vulnerable populations, including those at risk of homelessness or requiring specialist accommodation.
Source: official statements, news agencies, and public reports.
https://www.london.gov.uk/md3441-london-social-and-affordable-homes-programme-2026-36
