The delivery of affordable housing in London is falling short of what residents actually need with rising costs, funding pressures and a lack of strategic focus slowing progress on the homes in greatest demand.
A new report from the London Assembly Housing Committee warns that the Mayor’s Affordable Homes Programme is failing to keep pace with need, despite significant public investment.
As of September 2025, 64% of homes funded under the current programme had yet to start on site, with the scheme due to end in March 2026.
The Committee found that shortages are most acute for family-sized social rent homes and accessible homes for Deaf and Disabled Londoners. Insufficient delivery in these areas is leaving many households stuck in overcrowded or unsuitable accommodation, while demand continues to rise.
SLOW PROGRESS
Concerns were also raised about the slow progress in identifying and delivering sites for Gypsy, Roma and Traveller communities, alongside mounting pressure on supported housing providers struggling with uncertain and short-term funding.
To address these issues, the Committee is calling for a more targeted approach to affordable housing funding in the next programme period.
Recommendations include higher grant rates and clear delivery targets for family-sized and accessible homes under the 2026–36 Affordable Homes Programme, to ensure investment better reflects London’s most urgent housing needs.
The report also urges improved support for councils to acquire existing homes for social rent as a quicker route to increasing supply, stronger monitoring of delivery for Gypsy, Roma and Traveller communities, and more sustainable funding arrangements for supported housing that combine capital and revenue support.
DELIVERY FALLING BEHIND
Zoë Garbett AM (main picture, inset), chair of the London Assembly Housing Committee, says: “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.”
