Rising costs, funding constraints and a lack of strategic focus are slowing the delivery of the affordable homes Londoners need most, particularly family-sized and accessible homes.
A new report from the London Assembly Housing Committee – Assessing delivery, needs and challenges of the Mayor’s Affordable Homes – warns that London’s affordable housing system is failing to keep pace with need, despite public investment through the Mayor’s Affordable Homes Programme.
Delivery under the current programme has been slow, with 64 per cent of homes still to be started as of September 2025, less than a year before the programme is due to end in March 2026.
The Committee found that certain types of homes are in particularly short supply. Family-sized social rent homes and accessible homes for Deaf and Disabled Londoners are not being delivered at the scale required, leaving many families trapped in overcrowded or unsuitable accommodation. The report also raises concerns about the lack of progress in delivering sites for Gypsy, Roma and Traveller communities and the growing pressure on supported housing providers.
To address this, the Committee calls for a more targeted approach to funding affordable housing. Key recommendations include increasing grant rates and setting clear targets for family-sized and accessible homes under the 2026–36 Affordable Homes Programme, so that public investment better reflects London’s most urgent housing needs.
Other recommendations in the report include:
improving support for councils to acquire existing homes for social rent, as a faster way to increase supply
requiring better monitoring and reporting on homes delivered for Gypsy, Roma and Traveller communities, to ensure commitments translate into delivery
securing sustainable funding for supported housing, including revenue funding alongside capital investment
Chair of the London Assembly Housing Committee, Zoë Garbett AM, said: “London’s housing crisis is hitting families and disabled Londoners hardest, yet the homes they need most are the ones least likely to be built. The report highlights that delivery has slowed sharply since 2023, at the same time as demand for genuinely affordable housing continues to rise.”
“Evidence to the Committee showed that rising construction costs, high land prices, increased borrowing costs and new building safety requirements have all reduced the capacity of councils and housing associations to bring forward new homes. Without changes to how funding is allocated, the report warns that delivery under the next Affordable Homes Programme risks falling further behind.”
