London Mayor Sadiq Khan has emphasized the urgent need for the UK government to inject £2.2bn in emergency funding into affordable housebuilding. Khan criticized the lack of action by ministers in addressing the issues faced by the housing market, which he referred to as a “stalling market.” He highlighted the worsening national housebuilding downturn due to the lack of sufficient funding, stressing the necessity of additional financial support to maintain ongoing construction projects in London and across the country.
In his recent re-election, Khan pledged to prioritize £100m in kickstart funding for affordable housing. The Housing Kickstart Fund, introduced earlier this year, aims to revive stagnant developments in London. Its primary focus is to convert market sale properties in stalled projects into social housing, thus reigniting the construction process.
During the lead-up to the mayoral election, Khan faced scrutiny regarding his performance in housing delivery, with criticism coming from Housing Secretary Michael Gove. The mayor acknowledged that although London managed to meet its Affordable Homes Programme (AHP) targets, government investment was inadequate. Without increased funding, the capital’s affordable housebuilding efforts will fall short of meeting the needs of all Londoners requiring housing in the coming years.
In February, members of G15, an alliance of London’s largest housing associations, along with the Centre for London, urged the government to augment AHP grants in order to tackle the housing crisis effectively.