Rising costs, funding constraints and a lack of strategic focus
are slowing the delivery of the affordable homes Londoners need
most, particularly family-sized and accessible homes.
A new report from the London Assembly Housing
Committee – Assessing delivery, needs and challenges
of the Mayor's Affordable Homes – warns that London's
affordable housing system is failing to keep pace with need,
despite public investment through the Mayor's Affordable Homes
Programme. Delivery under the current programme has been slow,
with 64 per cent of homes still to be started as of
September 2025, less than a year before the programme is
due to end in March 2026.
The Committee found that certain types of homes are in
particularly short supply. Family-sized social rent homes and
accessible homes for Deaf and Disabled Londoners are not being
delivered at the scale required, leaving many families trapped in
overcrowded or unsuitable accommodation. The report also raises
concerns about the lack of progress in delivering sites for
Gypsy, Roma and Traveller communities and the growing pressure on
supported housing providers.
To address this, the Committee calls for a more targeted approach
to funding affordable housing. Key recommendations
include increasing grant rates and setting clear targets
for family-sized and accessible homes under the
2026–36 Affordable Homes Programme, so that public investment
better reflects London's most urgent housing needs.
Other recommendations in the report include:
- improving support for councils to
acquire existing homes for social rent, as a
faster way to increase supply
- requiring better monitoring
and reportingon homes delivered for Gypsy, Roma and
Traveller communities, to ensure commitments translate into
delivery
- securing sustainable
fundingfor supported housing, including revenue funding
alongside capital investment
Chair of the London Assembly Housing Committee, Zoë
Garbett AM, said:
“London's housing crisis is hitting families and disabled
Londoners hardest, yet the homes they need most are the ones
least likely to be built. The report highlights that delivery has
slowed sharply since 2023, at the same time as demand for
genuinely affordable housing continues to rise.”
“Evidence to the Committee showed that rising construction
costs, high land prices, increased borrowing costs and new
building safety requirements have all reduced the capacity of
councils and housing associations to bring forward new homes.
Without changes to how funding is allocated, the report warns
that delivery under the next Affordable Homes Programme risks
falling further behind.”
Notes for editors:
- Read the embargoed report attached.
-
Zoë Garbett
AM,the Chair of London
Assembly Housing Committee, is available for interview.
