London landlords call for more funding as development slowdown continues

The G15 said that “decades of underfunding and inconsistent policy” had left housing associations unable to build at scale.

London landlords have stepped back from development due to rising construction costs, building safety obligations and the need to scale up spending on repairs and maintenance of their existing homes.

Meanwhile, their income has been reduced by periodic government rent caps.

In October, the chancellor proposed a rent settlement of Consumer Price Index (CPI) plus 1% for at least five years, with a 10-year agreement under consideration.

The G15 warned that the government’s ambition to deliver 1.5 million new homes will “fall short of its intended impact” unless social and affordable housing is a “central part of the mix”.

The group has estimated that providing homes for everyone on London’s waiting list would inject £7.7bn into the UK economy each year.

A third of London’s police officers, ambulance staff and care workers live in social housing, as do 31% of workers in key sectors such as security, cleaning, postal services and hospitality.

“If they are priced out, London’s workforce – and its vital public services – will be left critically understaffed,” the G15 said.

At present, 60,000 households, including 85,000 children, are living in temporary accommodation, at a cost of £1.74bn annually to London councils.

The G15 called for the government to:

• Introduce a 10-year rent settlement at CPI+1%
• Create a long-term successor to the Affordable Homes Programme
• Ensure “equal access” to the Building Safety Fund and Cladding Safety Scheme
• Launch a new Warm and Decent Homes Fund to improve existing homes

Fiona Fletcher-Smith, chair of the G15 and chief executive of L&Q, said: “Although this crisis began before the new government took office, the responsibility to fix it now lies with them. A lack of social and affordable homes will directly affect every Londoner, not just those on waiting lists.

“With the right policies and funding from the Spending Review, we can reverse the slowdown, help the government meet its 1.5 million homes target, and provide the room to grow that London and Londoners so desperately need.

“Either government grips the housing crisis or accepts that it is managing decline. Housing associations have the experience, scale and public service ethos to deliver the right homes, for the right people and in the right places. The time to act is now.”

The Ministry of Housing, Communities and Local Government has been contacted for comment.