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G15 warns that new Affordable Homes Programme will halve the amount of sector jobs created in London
The new Affordable Homes Programme (AHP) and the reduced funding allocated to London will cut the amount of jobs created in construction and development by nearly half, according to the G15.
The G15, a coalition of the 12 largest housing associations in the capital, said the current AHP, which runs from 2016 to 2021, allocated London £960m a year which lead to creation of 21,474 homes and nearly 50,000 jobs.
But the latest version of the AHP, which will run from 2021 to 2026, reduces funding to London to £800m a year, which, the G15 said, will allow only 11,800 homes to be built and create just 27,000 jobs.
The AHP 2021-26, first announced in the March Budget, aims to build 180,000 homes over the five-year period, but it has been met with criticism from London landlords and Northern sector leaders, who said issues around social rent provision risk undermining the government’s ‘levelling-up’ agenda.
In a new report, Homes Londoners Can Afford; Jobs They Can Be Proud Of, the G15 argues that immediate funding for affordable housebuilding in London would provide a major boost to the economy overall by creating jobs and supporting existing ones.
The organisation highlighted the Greater London Authority’s estimate that the capital requires £4.9bn a year in grant which, if allocated at the same grant per unit as the AHP 2021-26, would create an estimated 166,279 jobs each year.
By contrast, the report said the new AHP will translate to 82,800 jobs created each year in England.
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Vicky Savage, chair of the G15’s development directors group and London managing director at L&Q, said: “During these unprecedented times, investing in affordable homes will continue to give wide-ranging returns which go far beyond than just bricks and mortar.
“The construction and development sector will continue to be a major employer going forward and the G15 is ready to play a critical role in ensuring this.”
Helen Evans, chair of the G15 and chief executive of Network Homes, said the group welcomes the new AHP, but warned: “We view the allocation to London itself will not be enough to meet the need for affordable housing in the capital and new complex funding rules could limit bids.
“This report supports the evidence that backing London through new employment opportunities will be key to achieving this significant and viable programme of quality new homes.”
A spokesperson for the Ministry of Housing, Communities and Local Government said: “The government is committed to levelling up every part of the country. Through our ambitious programme of nine devolution deals, we’re unlocking £7.49bn worth of investment funding to the metro mayors and their combined authorities.
“Our £4bn offer to London is part of the single biggest funding commitment to affordable housing in a decade, helping hard-working families take their first step on the housing ladder and supporting the most vulnerable.”
Update: at 10:05am, 30.10.20
This story was updated to include the government’s response.
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