The 2022-2032 Affordable Housing Funding Requirement for London
Working alongside the G15 and other senior representatives from the affordable housing sector, City Hall has assessed the amount of Government grant funding required to meet the new London Plan’s strategic target of 50% affordable housing and deliver 32,500 new affordable homes a year between 2022 and 2032.
The detailed analysis has built from the ground up, aggregating borough-level data on costs, revenues, and other key factors, to give a pan-London view. This found that the grant required to deliver a new 2022-2032 affordable homes programme of 22,750 social rent homes, 6,500 shared ownership homes and 3,250 intermediate rent homes is estimated to be £4.9 billion per year.
This is 48% of the estimated total cost of the grant-funded affordable homes, a figure that is lower than typical Government grant rates prior to the financial crisis.