Building full pipeline would cost more than half a million pounds more than London’s total SAHP allocation
London boroughs have identified sites to build more than 50,000 new council homes.
A build out of this scale would represent a 15% increase to the capital’s council housing stock of 390,000.
The figure was calculated by London Councils, a cross-party group representing all 32 boroughs and the City of London Corporation.
The group surveyed its members on their submissions to the London Social and Affordable Homes Programme (LSAHP).
London Councils’ analysis found that, in total, London boroughs’ submissions would require £12.3bn in grant funding to unlock the pipeline.
Currently, LSAHP is set to receive £11.7bn from 2026 to 2036, with allocations set to be confirmed imminently by the Greater London Authority.
Grant allocations for the rest of the rest of England, announced by Homes England in August, included the appointment of three councils as strategic partners and were accompanied by extra money to help local authorities build capacity for development.
Housing minister Matthew Pennycook subsequently revealed that money had been “held back” from the first wave of Homes England allocations, worth around £10bn, in order to give to councils later in the programme.
London councils have been responsible for a relatively higher level of council direct delivery in recent years, with half of all council homes built between 2024 to 2025 located in the capital.
“These figures demonstrate boroughs’ ambitious commitment to building the next generation of council housing across the capital,” said Anthony Okereke, London Councils’ executive member for housing and homelessness.
“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 budget, London Councils is urging further grant funding increase and reforms to rules concerning Housing Revenue Accounts to enable councils to access low-interest lending.
It also argued for changes to London Formula Rent to give boroughs more flexibility in setting social rents, as well as additional funding for acquisitions.
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