London's Affordable Housing Programme Fails Families and Disabled Residents
A comprehensive report from the London Assembly Housing Committee has delivered a stark assessment of the capital's affordable housing delivery, revealing a system that is failing to meet the most urgent needs of Londoners. The investigation found that the social housing system is not keeping pace with increasing demand from families and disabled residents, with a particular shortage of affordable family-sized and accessible properties.
Shocking Statistics on Family-Sized Homes
The data presents a troubling picture of housing provision in London. Between 2016 and 2025, just three per cent of all homes built through City Hall's Affordable Homes Programme had four or more bedrooms. Less than a fifth of properties had three bedrooms, while the vast majority - 78 per cent - were either studios, or one or two-bedroom properties.
Committee Chair Zoë Garbett stated: "London's housing crisis is hitting families and disabled Londoners hardest, yet the homes they need most are the ones least likely to be built." The report highlights that delivery has slowed sharply since 2023, coinciding with rising demand for genuinely affordable housing.
Funding Structure Identified as Key Problem
The investigation identified the current grant allocation system as a major barrier to delivering suitable homes. Developers are not being given appropriate grants to motivate them to build larger homes, which are more expensive to construct. The G15, representing London's leading housing associations, told the committee that allocating grants based on habitable rooms "rather than per unit would better reflect the cost and space requirements of different home types."
The report recommends that the Greater London Authority should adjust grants for any bid delivering family-sized homes and introduce specific targets for such properties through the Affordable Homes Programme. While acknowledging that higher grant rates would impact the overall number of units delivered, the committee argues that strategic use of funds would better meet London's most urgent housing needs.
Accessible Housing Data Gap
The report also highlighted significant concerns about accessible housing provision for disabled and deaf Londoners. Substandard monitoring and an absence of targets for accessible affordable homes have created confusion about actual requirements. The committee noted that insufficient data means they cannot determine whether delivery partners are meeting accessibility targets set out in the London Plan.
Evidence presented to the investigation suggests the current programme is not designed to facilitate delivery of accessible, affordable homes, as grants are not adjusted to accommodate their specific requirements.
Delivery Shortfalls and Economic Challenges
The Greater London Authority has faced criticism for underperformance in delivering the affordable homes needed to keep pace with rising demand. While Mayor Sadiq Khan met his initial target of 116,000 starts under the 2016-2023 programme, recent years have seen significant shortfalls.
The original target for the 2021-2026 Affordable Homes Programme was 35,000 starts by March 2026, but this was revised down twice to a minimum of 17,800. By September 2025, just 6,370 affordable homes had been started, leaving a major shortfall ahead of the looming deadline.
Deputy Mayor for Housing Tom Copley has blamed a "perfect storm" of factors including soaring interest rates, rising construction costs, high land prices, increased borrowing costs, and new building safety requirements. These challenges have reduced the capacity of councils and housing associations to bring forward new developments.
Government Response and Future Plans
A spokesperson for the Mayor of London defended the administration's record, stating: "Tackling the housing crisis is a top priority for the Mayor and he is doing everything he can to deliver more homes of all tenures." They highlighted that despite tough economic conditions, the Mayor exceeded the ambitious target set by the previous government and has prioritised delivering homes for social rent during challenging economic conditions.
The spokesperson added: "This year, we are encouraging housing providers to bid for a record government investment of £11.7 billion through the Mayor's Affordable Homes Programme to deliver social and affordable housing across London." They emphasised expectations for all home builders to adhere to London Plan policies on wheelchair-accessible homes and welcomed bids for family-sized properties.
However, the report warns that without urgent changes to how funding is allocated, delivery under the next Affordable Homes Programme risks falling further behind London's growing housing needs.
