Sadiq Khan, recently re-elected as the Mayor of London, has once again called on the government to provide £2.2bn in emergency funding for affordable housebuilding. Khan highlighted the urgent need for action to address the economic slowdown in the housing market, emphasizing that a lack of funding is further exacerbating the national downturn.
With related statistics from the Greater London Authority revealing a significant decline in building starts for grant-funded affordable homes, Khan stressed the necessity of increased funding to keep housebuilders active in London and across the country. Between April 2023 and March 2024, only 2,358 affordable homes were initiated, a sharp decline from the previous year’s 25,658.
In addition to his plea for emergency funding, Khan pledged to allocate £100m as kickstart funding for his third term as mayor. The Housing Kickstart Fund aims to revive stalled developments throughout London, with a particular focus on converting market sale homes in these projects into social housing.
Khan’s track record in housing delivery faced considerable scrutiny during the London mayoral election, with criticism from housing secretary Michael Gove. Despite London meeting its Affordable Homes Programme targets, Khan argued that government investment remains insufficient. This insufficiency may ultimately impede the progress of affordable housebuilding in the capital city and necessitate further action from policymakers.