Mayor’s Homes for Londoners Land Fund delivers £50 million investment to build more than 500 affordable homes

• Peabody to deliver more than 500 affordable homes across the capital
• Funding guidance published for first round of £324 million City Hall Developer Investment Fund
• Action builds on record £11.7 billion investment in affordable housing over the next decade

The Mayor of London, Sadiq Khan, has approved a £50 million investment to support the delivery of more than 500 affordable homes across the capital by March 2032—helping to provide the homes Londoners urgently need.

The investment will be provided from funds repaid into the Homes for Londoners Land Fund - a key Mayoral programme designed to accelerate housing delivery and increase the supply of affordable homes in London. Last summer the Mayor announced that the Land Fund had started more than 8000 new homes – five years ahead of schedule.(3)

As part of this investment, City Hall will provide a £50 million loan to Peabody, one of the capital’s largest housing associations, enabling it to unlock new developments and bring forward more than 500 affordable homes.

The Homes for Londoners Land Fund plays a central role in the Mayor’s plans to tackle London’s housing crisis by supporting strategic land investment and unlocking development opportunities. This latest allocation demonstrates how, in difficult circumstances for housing construction, City Hall is continuing to use funding flexibly and efficiently to maximise delivery and support sustainable communities across London. It also builds on successful previous delivery and recovery of funds, which enables the Fund to redeploy funding into innovative proposals like this to unlock new housing.

Alongside this announcement, City Hall has today published funding guidance for the first £324 million round of the City Hall Developer Investment Fund, to be provided via the GLA’s Integrated Settlement. Separately, the Mayor recently announced an additional £1.5 billion package would be made available to London to provide low-cost loans for housing associations aimed at accelerating the construction of new social and affordable homes across the capital.(4)

Housebuilding in London continues to face significant challenges, including high interest rates, rising construction costs, the lasting impacts of the pandemic and Brexit, and delays linked to building safety requirements.

The City Hall Developer Investment Fund will continue the work started by the Land Fund, focusing on using money in a flexible way to get stalled development sites moving again, especially those that can deliver new homes as quickly as possible. Funding is available from 2026/27, and the GLA expects to select prioritised projects from this summer.

The Mayor is continuing to work closely with the Government and partners across the sector to boost delivery and build on progress already made. More new council homes have been started in London under Sadiq Khan than at any time since the 1970s and, prior to the pandemic, more new homes of all tenures were completed than at any point since the 1930s.

This latest £50 million loan to Peabody builds on the £11.7 billion of funding committed through the Mayor’s Social and Affordable Homes Programme over the next decade—the largest and longest investment in affordable housing the capital has ever seen. The Mayor continues to encourage housing providers to come forward and bid for funding to help deliver much-needed homes in every London borough.(5)

The Mayor of London, Sadiq Khan, said: “Delivering the homes Londoners need is one of my top priorities and I am determined to do everything in my power to increase the number of genuinely affordable homes in our city.

“This £50 million investment will unlock more than 500 new affordable homes, helping families across London access safe, secure and affordable places to live. By working in partnership with housing associations like Peabody and making use of available funding, we are accelerating delivery even in the face of significant challenges.

“But there is more to do. That’s why we are also launching the first phase of our City Hall Developer Investment Fund to help get more homes built faster.  We must continue to work together so we can build a fairer London for everyone, where all Londoners have the opportunity of a home.”

Ian McDermott, Chief Executive Officer of Peabody, said: “This funding will help us unlock the delivery of more than 500 affordable homes across London. For the people who will live in them, that means the security of a stable place to call home and the chance to stay connected to their families and friends, work, and communities. 

“Working in partnership with City Hall, the government and others allows us to plan with confidence and make the most of opportunities to build where homes are most needed. 

“This support will help us keep a strong pipeline of new homes coming forward - so more Londoners can find a genuinely affordable place to live in the neighbourhoods they know and value.”