Sir Sadiq Khan is to inject £6 billion into building more council and housing association homes in London.
The Government has confirmed to City Hall that it is getting £3.3 billion of funding over the four years until 2030 as it seeks to tackle the capital’s housing crisis.
The allocation is a share of the city’s overall £11.7 billion from the Government’s £39 billion Social and Affordable Homes Programme from 2026 to 2036.
Funding allocation and immediate reaction
Ministers faced immediate accusations from the Conservatives that they were backloading funding for the scheme and that the Labour government may never have to foot the bill.
But Sir Sadiq is using the guarantee of future funding to allocate at an early stage £6 billion for new homes over the ten-year period.
He said: “Thousands of Londoners will benefit from this new wave of new social and affordable homes, which will help people out of temporary accommodation and provide good, affordable homes to live in for the long-term, as we build a fairer, better London for everyone.”
He stressed that he wanted to deliver a “step change” in the number of council homes being built in London.
Government and housing secretary response
The Government said the funding reflected the “acute need for affordable housing in the capital”. Councils are expected to deliver more than half of the homes funded in the city under the scheme.
Housing Secretary Angela Rayner said: “Families can’t be left raising children without a place to call home and none of us should spend years waiting for somewhere safe and affordable to live.
“That’s why the Prime Minister and I are doing everything we can to get councils building once again – it’s fundamental to turning the housing crisis around, helping families out of temporary accommodation and into a secure home.”
Just days ago, Ms Rayner announced that housing schemes near busy Tube and rail stations would be in line for default planning permission.
Conservative criticism and wider context
Ministers on Tuesday were allocating nearly £10 billion to build thousands more council, social and affordable homes outside of London.
But the Conservatives accused the Government of a “sleight of hand” with “yet another unfunded” spending commitment.
Shadow housing secretary Sir James Cleverly, who is the early frontrunner to be the Tory contender for Mayor of London in 2028, said: “The small print shows homes won’t have to be delivered until 2039.
“The funding has been backloaded to fall outside the Spending Review and this Parliament, meaning Andy Burnham will never have to pay for it.
“Instead, it'll be another cheque written by a Labour PM and left for future generations to cover.”
The row erupted as Mr Burnham’s Government is scrambling to meet Labour’s 2024 general election manifesto target of 1.5 million new homes by 2029.
Sarah Elliott, chief executive of Shelter, said: “Today’s announcement puts councils back on the pitch in the fight to end homelessness.” But the Liberal Democrats said the proposals fell far short of the level of new housing needed, with rents continuing to rise in London.
The funding being announced on Tuesday is focused on enabling the delivery of more than 70,000 homes across England by 33 “strategic partners” outside of London.
Under the plan, 4,400 homes are set to be delivered in Greater Manchester with a spend of £529 million while 3,200 new homes will be delivered in the West Midlands at a cost of £409 million.
The North East has been allocated a £445 million estimated spend to support delivery of 3,400 homes, with West Yorkshire receiving £441 million for 4,000 homes.
Liverpool City Region is set to deliver 3,100 homes supported by £380 million while South Yorkshire has been allocated £249 million to provide 2,200 new homes.
