London 'to fall furthest behind' under £39bn social housing plan
London 'to fall furthest behind' under £39bn housing plan

London risks falling significantly further behind other parts of England in tackling its social housing waiting list, new analysis suggests. Centre for Cities says planned delivery through the Social and Affordable Homes Programme will equate to just 18% of London’s priority waiting list by 2036.

That compares with 46% in rural areas and 26% across England’s established mayoral areas, according to the think tank’s analysis. The findings come despite London securing up to £11.7bn through the programme.

Funding allocation questioned

The government launched the 10-year, £39bn scheme to increase social and affordable housebuilding across England. Centre for Cities argues that ministers should direct more of the money towards large cities. It says housing need is greatest in these areas.

It wants the government to increase London’s share of the existing funding pot by around a third.

Call for more power for mayors

The think tank also wants metro mayors to gain greater control over social and affordable housing funding. London already operates a devolved model through the Greater London Authority. The government has also started giving mayoral authorities elsewhere greater influence over housing investment.

Centre for Cities argues that mayors can better coordinate housing delivery across council boundaries. Its report also calls for councils to gain more flexibility. It wants them to use market-rate development to help fund council housing.

Other recommendations include supporting development inside and outside Housing Revenue Accounts. The think tank also wants ministers to review rules that increase development costs.

'London has the most severe housing pressure'

Ant Breach, director of policy and research at Centre for Cities, said: “The Government has rightly committed serious money to social and affordable housing and this is in an incredibly tight fiscal context.

“It now needs to make sure that money is targeted where housing need is greatest and where new homes can do most to support economic growth.

“Based on current plans, rural areas will build enough new social homes to make more than twice as much progress against their priority waiting lists as London.

“That doesn’t make sense when London has the most severe housing pressure in the country.”

He added: “Across England, mayors should be given much greater control over social and affordable housebuilding.

“Housing markets don’t stop at council boundaries, and mayors are better placed to coordinate where homes are built, where infrastructure is needed and how funding is spent.”

The government wants at least 60% of homes delivered through the £39bn programme to be for social rent.