Mayor Sadiq Khan has secured more than £4.8bn from the Government to help start building at least 116,000 affordable homes by March 2022. This will help Londoners who would otherwise struggle to rent or buy, and forms part of Homes for Londoners - the Mayor’s work to tackle London’s housing crisis.
Homes for Londoners: Affordable Homes Programme 2016-21
The Mayor published his Homes for Londoners: Affordable Homes Programme 2016-21 funding guidance in November 2016.
This will help housing associations, community groups, London boroughs and private developers to build new affordable homes in London. It explains how to get funding from the Mayor and any rules that apply.
In June 2018, the Mayor published an addendum to the funding guidance. The addendum takes into account the additional £1.67bn the Mayor secured from central Government in the Spring Statement 2018, which will contribute to the Mayor’s target to deliver 116,000 affordable starts by 2022 alongside the £3.15bn the Mayor secured previously. It should be read in conjunction with the Homes for Londoners: Affordable Homes Programme 2016-21 funding guidance and encompasses four elements:
- extending the programme into 2021-22;
- increases to the set grant rates for the Approved Provider route;
- a minor change to the Negotiated route; and
- a new strategic interventions funding option.
The types of affordable homes the Mayor is funding include:
- London Affordable Rent - for people on low incomes
- London Living Rent - helping Londoners on average incomes save for a deposit to buy their first home
- London Shared Ownership - for people who want to buy but can't afford the open market
Funding is available to local authorities and registered providers (housing associations) who have Investment Partner status with the GLA. Bids must be submitted through the GLA’s Open Project System (OPS), which is open for continuous bidding.
On 13 July 2017, the Mayor announced funding allocations following the initial bidding round. The allocations will see an estimated £1.7bn invested in 49,398 genuinely affordable homes being built, with new homes in all London boroughs and the City of London.
London Affordable Rent - weekly rent benchmarks
As set out in the 2016-21 Affordable Homes Programme Funding Guidance, the GLA will update its London Affordable Rent weekly rent benchmarks on an annual basis, updating each one by the increase in CPI for the previous September plus 1%. The weekly rent benchmarks from 2017/18 to 2019/20 are shown in the table below:
|Bedsit and one bedroom||£144.26||£150.03||£155.13|
|Six or more bedrooms||£186.66||£194.13||£200.73|
Each of the funding routes has its own funding agreement, with variants for provider type. The funding agreements are in a standard form and not subject to negotiation. The GLA will arrange for engrossments to be sent out to successful partners.
- NG Contract for Private Registered Providers (Not for Profit)
- NG Contract for Private Registered Providers (For Profit)
- NG Contract for Local Authorities
- NG Contract for Mixed Consortiums (Registered Providers and Local Authorities)
- NG Contract for Unregistered Bodies
- Almshouse Consortium Contract – to follow