New data from the London Assembly Housing Committee highlights a pressing challenge for the Affordable Homes Programme (AHP) 2021-26. According to the report, over 90% of the homes promised under this scheme need to start construction within the next two years to meet the programme’s goals.
The AHP, designed to deliver between 23,900 and 27,100 affordable homes by March 2026, has seen limited progress. By March 2024, only 1,777 homes had begun construction. This delay has raised concerns, as completions for the current phase must be achieved by 2030.
Several factors contribute to this delay. The ongoing impacts of inflation, rising construction costs, and delays in funding from the previous government have slowed progress. London’s housing sector faces serious challenges, with a 30% drop in new builds in the past year alone.
Tom Copley, London’s Deputy Mayor for Housing and Residential Development, emphasized that City Hall is focusing on joint ventures and partnerships with both public and private developers to expedite the process.
Despite these setbacks, there have been some positive outcomes. The Greater London Authority (GLA) has achieved a higher percentage of social rent homes in the 2021-26 AHP compared to the previous programme, with 60% of starts now dedicated to social rent, up from 39%.
However, there remains a significant shortfall in affordable housing overall. As Sem Moema, Chair of the London Assembly Housing Committee, noted, London still needs far more affordable homes to meet demand. The challenges of the past year have only underscored this urgent need.
Business groups also share these concerns. Stephanie Pollitt, Housing Programme Director at BusinessLDN, stressed that the capital’s housing crisis is not only impacting residents but also businesses struggling to retain staff due to a lack of affordable housing. She urged stronger collaboration between the government and private sector to overcome financial constraints and get construction underway.
Mayor Sadiq Khan has called for a £2.2 billion emergency stimulus to accelerate affordable housing projects, as starts fell by 90% over the past year. His ambitious goal of delivering 40,000 new council homes by 2030 remains a crucial target for addressing London’s housing crisis.
