London boroughs identify sites for 50,000 new council homes
More than 50,000 new homes could be built over the next decade, but significant funding is required.
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More than 50,000 new council homes could be constructed across London over the coming decade, following the identification of potential development sites by the city's boroughs. This ambitious housing programme, however, hinges on securing £12.3 billion in grant funding to realise the full potential of these identified locations.
Funding and Programme Details
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London Councils, the representative body for all 32 boroughs and the City of London Corporation, stated that these homes could be delivered through the London Social and Affordable Homes Programme (LSAHP). This programme is slated to receive £11.7 billion in funding between 2026 and 2036. If this pipeline is fully realised, it would represent a nearly 15 per cent increase to London's current council housing stock of 390,000 homes.
Anthony Okereke, executive member for housing and homelessness at London Councils, highlighted the boroughs' commitment to addressing the capital's housing and homelessness emergency. He stated that boroughs have identified specific development opportunities where they are seeking funding for new council housing, possessing the expertise and determination but requiring investment to proceed.
London Councils welcomed the Government's increased investment in the LSAHP and the Greater London Authority's confirmation that council-led schemes will constitute 60 per cent of homes delivered under initial allocations. The organisation noted that London already accounts for half of all council homes built in England in the current financial year.
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Calls for Further Support
Ahead of the Government's Autumn Budget, London Councils is advocating for additional grant funding and financial measures, such as access to low-interest loans, to accelerate housebuilding. The organisation is also calling for reforms to the Housing Revenue Account, including changes to the 2012 debt settlement and permission for councils to access lower-interest borrowing options. Furthermore, they propose a reset of the London Formula Rent to allow boroughs more flexibility in setting social rents that reflect the capital's high property costs.
The acquisition of existing homes is also identified as a crucial component of the solution, with boroughs already utilising funds from the Local Authority Housing Fund and the Social and Affordable Homes Programme for such purchases. These acquisitions help unlock stalled development sites, convert market homes to affordable tenures, and reduce reliance on the private rented sector for temporary accommodation.
Scale of Housing Need
The demand for housing in London remains significant. An estimated 210,000 Londoners are currently homeless and residing in temporary accommodation, representing approximately one in every 50 residents. The city accounts for more than half of all homeless households in England, and over 330,000 households are on social housing waiting lists.
Questions this report answers
+How many new council homes could be built in London?
London boroughs have identified potential sites for more than 50,000 new council homes over the next decade. This ambitious programme aims to increase the city's council housing stock, which currently stands at 390,000 homes.
+What funding is needed for these new homes?
Delivering the full pipeline of over 50,000 new council homes would require £12.3 billion in grant funding. The London Social and Affordable Homes Programme is set to receive £11.7 billion between 2026 and 2036.
+What is the current housing situation in London?
London currently has 390,000 council homes. However, an estimated 210,000 Londoners are homeless and living in temporary accommodation, and more than 330,000 households are on social housing waiting lists.
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