London’s affordable housing system is failing to keep pace with need despite public investment through the mayor’s Affordable Homes Programme, according to a new report.
The London Assembly Housing Committee’s report – Assessing delivery, needs and challenges of the Mayor’s Affordable Homes – warns that rising costs, funding constraints and a lack of strategic focus are slowing the delivery of the affordable homes Londoners need most.
According to the committee, delivery under the current programme has been slow, with 64% 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 also found that certain types of housing, including family-sized and accessible homes, are in particularly short supply. The report also raises concerns about the lack of progress on delivering sites for Gypsy, Roma and Traveller communities and the growing pressure on supported housing providers.
Commenting on the report, Zoë Garbett, chair of the London Assembly Housing Committee, highlighted high construction costs and new building safety regulations as among the factors slowing housing delivery.
“The report highlights that delivery has slowed sharply since 2023, at the same time as demand for genuinely affordable housing continues to rise,” Garbett said.
“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.”
Committee recommendations
To address the issues raised in the report, the committee has called for a more targeted approach to funding affordable housing.
The 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.
- 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.
