London boroughs have identified sites to build over 50,000 new council homes in the capital if sufficient funding is available, analysis reveals.

This would represent an almost 15% increase to London’s council housing stock – a significant boost in the face of London’s worsening housing and homelessness pressures[i].

London Councils says the figure demonstrates boroughs’ commitment to building the next generation of council housing across the capital and to working with the government on this agenda.    

The cross-party group, which represents all 32 boroughs and the City of London Corporation, surveyed its members on their submissions to the London Social and Affordable Homes Programme (LSAHP)[ii].

London Councils’ analysis found that:

• Boroughs’ submissions to the LSAHP represent a pipeline of over 50,000 new council homes in London over the next ten years.
• London boroughs currently own and operate around 390,000 council homes. The pipeline would therefore increase the number of council homes in London by almost 15%.
• In total London boroughs’ submissions would require £12.3 billion in grant funding to unlock this pipeline. The LSAHP is currently set to receive £11.7 billion from 2026 to 2036, with boroughs’ allocations to be confirmed by the GLA shortly.

London Councils has welcomed the government’s increased investment in the social and affordable homes programme and the GLA’s confirmation that council-led projects will account for 60% of the homes delivered through the initial LSAHP allocations

Boroughs in the capital are proud of their track record in building council homes. The government has itself acknowledged that “London is already showing what can be achieved through fuller devolution when it comes to council housebuilding”, with half of all council homes built in 2024 to 2025 located in the capital.

Boroughs are working together  with partners on how best to keep increasing delivery of new council homes, creating good-quality homes and ensuring those homes go to Londoners who need them most.

In support of this, London Councils is making the case that further grant funding and other financial measures – including access to low-interest loans – are needed to accelerate progress and maximise delivery of boroughs’ council housebuilding ambitions.

Cllr Anthony Okereke, London Councils’ Executive Member for Housing & 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.”

Ahead of the government’s Autumn Budget, London Councils is making the case for additional financial support for council housing, which must sit among a broader sweep of policy reforms tackling housing and homelessness pressures. Policy priorities include:

Further targeted grant funding

Building on the government’s uplift to the Social and Affordable Homes Programme, further grant funding increases would make more council housebuilding projects viable and accelerate delivery.

For example, full delivery of the pipeline of over 50,000 potential council homes in London is estimated to cost £12.3 billion. The current LSAHP is worth £11.7 billion and is designed to fund a range of development organisations including housing associations and private developers, as well as local authorities.

Reforming nationally set rules on Housing Revenue Accounts (local authorities’ budgets for managing their council housing)

Changes should include an urgent reassessment of the 2012 HRA debt settlement, enabling councils to access low-interest lending, and a London Formula Rent reset that would give boroughs extra flexibility in setting social rents to account for the capital’s high property costs. Reforms such as these would strengthen boroughs’ resources for investing in council housing, including building new homes.

Additional funding for acquisitions

Boosting London boroughs’ ability to buy existing housing is another vital part of the solution to the housing crisis.

London boroughs are making good use of the Local Authority Housing Fund and the Social and Affordable Homes Programme to fund acquisitions. Boroughs’ acquisitions have unblocked stalled sites, converted market housing into affordable homes, reduced reliance on the private rented sector for finding desperately needed temporary accommodation, and supported London’s wider development sector in a downturn.

[i] London Councils’ analysis of homelessness statistics shows that an estimated 210,000 Londoners are homeless and living in temporary accommodation. This equates to around one in every 50 residents of the capital. London accounts for more than half of all homeless households in England.

In addition, more than 330,000 households are on local authority housing registers (commonly known as social housing waiting lists) in the capital.[ii] The Social and Affordable Homes Programme provides government grant funding for new social and affordable housing. In the capital the programme’s funding is managed and distributed by the Greater London Authority.

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