Tackling the housing crisis and ensuring access to affordable accommodation for the most vulnerable sections of society remain among the key priorities of London City Hall. With housing
costs continuing to put pressure on households across the capital, Mayor Sadiq Khan is seeking to accelerate the construction of social and affordable homes, including by bringing stalled developments back into operation with additional government support.
The Mayor's strategy focuses not only on launching new construction projects but also on unlocking existing sites where building work has been delayed by financial pressures, rising costs and regulatory obstacles. City Hall believes that targeted public investment and faster planning procedures can help overcome these barriers and increase the supply of homes that Londoners can afford.
Recent figures demonstrate progress under the Mayor's existing Affordable Homes Programme. Sadiq Khan has exceeded the upper end of the Government's target for affordable housing starts under the £4 billion programme covering 2021–2026. A total of 21,001 affordable homes have started construction across London, exceeding the upper target of 19,000 by 2,001. Since 2016, more than 116,000 affordable housing starts have been recorded across the capital.
This achievement comes despite difficult conditions for the construction industry. Higher building and borrowing costs have made it increasingly challenging for developers to begin projects, while additional building safety requirements and delays involving the Building Safety Regulator have created further obstacles to housing delivery.
To address these difficulties, the Mayor has negotiated additional support from the Government. In March, City Hall agreed on a package of temporary emergency measures, including a time-limited fast-track planning route for eligible developments. The initiative is supported by £324 million in government funding for the City Hall Developer Investment Fund, which aims to help stalled construction projects resume and accelerate the delivery of new homes.
Looking ahead, the Government has committed up to £11.7 billion for the London Social and Affordable Homes Programme covering 2026–2036. The Mayor has already issued funding offers worth at least £6 billion in the first allocation round. Around 60 per cent of this initial funding is earmarked for local authorities to support the construction of council housing.
The new investment is expected to support thousands of additional social and affordable homes, including properties available for social rent. This is particularly important for low-income households and people who cannot access accommodation through London's increasingly expensive private rental market.
The latest results suggest that cooperation between City Hall and the Government can make a significant contribution to addressing London's housing shortage. However, the challenge remains substantial. The priority for the coming years will be to translate funding commitments into completed homes, overcome construction delays and ensure that affordable accommodation reaches those who need it most.
For Sadiq Khan, the next stage is therefore clear: unlock stalled developments, accelerate construction and expand the availability of social and affordable housing across the capital.
The Mayor of London, Sadiq Khan, said: “I’m hugely proud that we’ve exceeded the Government target. Councils, housing associations, and housebuilders across London have worked hard to get these homes under way in some of the toughest conditions for housebuilding in years, and today’s figures show that our collective work is delivering for Londoners.
“Building more social and affordable homes is a top priority and I’m taking the tough decisions needed to get them built.
“I know we’ve still got a long way to go to tackle the housing crisis. I’m working closely with the Government to agree temporary emergency measures to get stalled sites moving. We’ve also secured funding to help build thousands more social and affordable homes over the next decade to ensure we deliver the homes Londoners desperately need, as we build a better London for everyone.”
Secretary of State for Housing, Communities, and Local Government Angela Rayner said: “Londoners deserve decent, affordable homes and it’s encouraging to see the capital exceeding its target, as we continue to turn the tide on the housing crisis.
“We know we need to go further though, and we’ll continue to work closely with the Mayor, with up to £11.7 billion made available to get stalled sites moving and build the social and affordable homes families desperately need.”
