London councils call for funding to deliver 50,000 new homes

With more than 200,000 Londoners homeless and living in temporary accommodation, London Councils’ is urging the government to boost the number of council homes.

Research by London Councils’ reveals 50,000 potential new council homes that could be built in the capital if sufficient funding support is available.

The news comes as a government minister claims rising rents are among the factors contributing to homelessness and rough sleeping.

Deliver more council homes

According to London Councils, borough submissions to the London Social and Affordable Homes Programme (LSAHP) represent a pipeline of more than 50,000 council homes between 2026 and 2036.

London boroughs currently own and operate around 390,000 council homes. Delivering the proposed pipeline would therefore increase the capital’s council housing stock by almost 15%.

However, boroughs say significant additional funding will be needed to turn the plans into reality.

In total, London boroughs’ submissions would require £12.3 billion in grant funding to unlock the proposed pipeline. The LSAHP currently has £11.7 billion allocated between 2026 and 2036, leaving a potential £600 million shortfall against the funding requested by boroughs.

London Councils is calling on the government to provide the funding needed to deliver more council homes and increase the supply of genuinely affordable housing in the capital.

Building next generation of council housing

Councillor Anthony Okereke, London Councils’ executive member for Housing and Homelessness, said: “These figures demonstrate boroughs’ ambitious commitment to building the next generation of council housing across the capital.

“London is grappling with the most severe housing and homelessness emergency in the country. Boosting the number of council homes is a key part of tackling this crisis, and London boroughs have a proud track record of delivery in recent years.

“Boroughs want to build more. We have identified a pipeline of over 50,000 new council homes we could deliver in the coming years. These are specific development opportunities where we are seeking funding for new council housing.

“We have the expertise, we have the vision, we have the determination, we now need the investment to make it happen.”

Urgent reassessment

London Councils is also calling for reforms to nationally set rules governing Housing Revenue Accounts (HRAs).

The group wants an urgent reassessment of the 2012 HRA debt settlement, alongside changes to allow councils to access lower-cost lending. It is also calling for a London Formula Rent reset, giving boroughs greater flexibility to set social rents that reflect the capital’s higher property costs.

London Councils says reforms such as these would strengthen boroughs’ finances and give them greater capacity to invest in council housing, including the construction of new homes.