Funding London's affordable homes

The provision of social and affordable housing allows London to be a city for everyone.

Without it the fabric of London would change. Our work helps to ensure London maintains its economic vitality and diversity, prevents housing-related poverty, and unlocks a huge amount of social value for residents, for London and the UK, and for society at large.

With a new Labour government now setting ambitious targets for new homes, this report examines the critical role that housing associations play, both in ensuring London remains affordable and accessible to Londoners, and in raising the funds necessary to meet the moment and bring about real change.

Summary of key points:

• Housing associations provide 289,000 socially rented homes in London at an average rent of £130.27 per week. 75% of these homes are provided by G15 members.
• Social housing is 70% cheaper on average than private market alternatives. Without it, London would be off limits to many people on medium to low incomes; our work helps to ensure London maintains its economic vitality and diversity.
• For those on the lowest 20% of incomes in London, the average social rented home costs 28% of their take-home income, while a privately rented home would consume over 94% of their income.
• Providing a stable, affordable home also delivers benefits across a host of other areas, promoting higher employment, lower ill-health and stimulating the construction and maintenance sector.
• Since government funding was cut by 60% in 2010, housing associations have been increasingly reliant on income from private borrowing and profits from selling and renting homes on the private market.
• Nonetheless, social housing rents are still our main source of income and we use them both to fund upgrades to existing homes and to cover part of the cost of building new social homes.
• Having reliable income from rents allows us to borrow cheaply without adding to the government's debt, but uncertainty around how much rent we can collect over the next decade is damaging our ability to do so cost-effectively.
• By borrowing privately we multiply any money that the government chooses to put in, raising £6 for every £1 in government investment.
• That's why we're calling for greater policy certainty to allow us to improve existing homes, build new ones, and address the housing crisis.

Read more in our case study... click here