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For anyone concerned about the housing crisis in London, the recent announcement of a massive cash injection for the capital’s social and affordable housing is more than welcome. Let's break down what this means for Londoners, local authorities, and housing associations.

What funding has been proposed for London?

The UK government has confirmed a monumental funding package specifically for London. The programme is an extension of the long-running Affordable Homes Programme (AHP), and the capital is set to receive up to £11.7 billion, as recently announced in a press release by the London Councils.

This funding is an investment. It will be allocated to housing providers across the city, primarily housing associations and London's boroughs, to build new homes. The aim is to deliver approximately 66,000 new homes by March 2026. A significant portion of these must be for social rent, the most affordable type of housing, with others being for shared ownership and other affordable tenures.

This money is the London portion of a larger national fund, highlighting the acute level of need in the capital and representing a major commitment to tackling the issue head-on.

Why is this a critical lifeline for social housing in London?

London's housing crisis is well-documented. Soaring private rents, lengthy waiting lists for social housing, and the struggle of key workers to live near their jobs have been defining challenges for a while. This funding is important because it directly addresses the root of the problem, which is a severe lack of supply of genuinely affordable homes.

• Focus on social rent - The emphasis on building homes for social rent is vital. It provides a secure, long-term foundation for families, low-income earners, and vulnerable people, offering a ladder out of the expensive and insecure private rental sector.

• Security - Social housing provides more than just shelter; it provides community and stability. It allows children to put down roots in schools and families to build connections without the fear of sudden eviction or unaffordable rent hikes.

The positive impact - How will this help Londoners, local authorities, and housing associations?

The investment will be felt across the city.

For Londoners:

• More affordable homes -Thousands of families and individuals on waiting lists will have a chance at a secure, affordable home.

• Reducing homelessness - By increasing the supply of affordable housing, the programme acts as a robust preventative measure against homelessness.

For local authorities and housing associations:

• Certainty to build - Long-term, guaranteed funding enables local authorities and housing associations to plan large-scale development projects with confidence, hire contractors, and secure the financial backing they need.

• Regeneration potential - This funding can be the catalyst for wider regeneration projects, improving not just housing but also local infrastructure, green spaces, and community facilities in deprived areas.

A step forward

It is a clear acknowledgement of the scale of the problem and a powerful investment in the city's future. By building homes that people can actually afford to live in, we are not just constructing buildings; we are strengthening communities and building a more equitable and sustainable London for everyone.

How can LHC help local authorities and housing associations?

For local authorities and housing associations embarking on these crucial projects, LHC is your dedicated partner in streamlining the procurement process. Our Added Value Services are designed to complement our frameworks, providing the expert support and guidance needed to navigate complex construction projects with confidence. By tapping into our team's wealth of knowledge and experience, you can make well-informed decisions, ensure compliance, and achieve best value, freeing up your time to focus on delivery.

For more information on how LHC can support your projects, contact Boby Singh, LHC’s Regional Manager, at Boby.Singh@lhcprocure.org.uk or 07708 072 305.