London to receive £6bn for social housing

London has been allocated £6bn as part of a national initiative to construct more than 70,000 social and affordable homes across England over the next decade. This funding represents the largest share of an initial £10bn allocated to address the country's housing crisis. The announcement forms part of a broader government plan to build 300,000 social and affordable homes nationwide.

Focus on Social Rent

Of the new homes planned, 60% will be designated for social rent. Social rent properties are typically priced at approximately half the cost of market rents, with specific eligibility criteria for applicants. This focus aims to provide significantly more affordable housing options for those in need.

Housing charities have welcomed the investment but stated it falls short of the total demand. Data from March 2025 indicates that 1.34 million households are currently on social housing waiting lists. The government's overall target is to build 1.5 million homes by 2029.

Concerns and Next Steps

While the funding for London is substantial, specific figures on the number of homes to be built within the capital have not yet been detailed. Ministers have indicated that some of these new homes will be constructed by local councils, with additional support and expertise to be provided. The exact split of funding between council-led developments and those managed by housing associations remains unclear.

Critics have raised concerns about the timeline for delivery, with some suggesting homes may not be completed until 2039. The announcement also follows previous pledges to build a higher number of homes, with current trajectories indicating a shortfall in meeting the 1.5 million target by 2029. Further allocations of the £39bn social housebuilding programme are expected to be announced for areas outside London.