The government has declared plans to construct 300,000 homes throughout the nation over the next decade as part of the newly launched £39 billion Social and Affordable Homes Programme, with a commitment to at least 180,000 being designated for social rent.

A significant portion of the funding, amounting to £11.7 billion, has been earmarked for London, a move praised by Mayor Sir Sadiq Khan, who highlighted that much work remains to address the ongoing housing crisis in the capital.

London is currently grappling with a severe housing shortage, where approximately one in 49 residents is reliant on temporary accommodations.

There are apprehensions that the government’s ambitious target may fall short due to a lack of personnel and materials in the construction sector, underscored by a recent 66% decline in the number of affordable homes constructed in London.

With the Social and Affordable Homes Programme, the government aims to produce a total of 300,000 residences, 60% of which are planned to be for social housing.

While the precise details of the remaining 40% are not yet defined, the government has previously indicated that it would also finance various other housing options, such as shared ownership and affordable rent.

The existing affordable homes initiative is set to conclude in 2026, yet concerns persist regarding the rate of construction.

In May, G15—representing London’s largest housing associations—reported a 66% drop in newly constructed affordable homes over the past two years.

Their report stressed the necessity for “prompt action” to confront a “escalating housing crisis.”

It detailed a decrease in new housing starts, with only 4,708 initiated in 2024-25, down from 13,744 two years prior.

Between January and March of this year, there was a 7% reduction in new construction starts compared to the same timeframe in 2023, according to G15.

Simultaneously, the Centre for London emphasized that the capital is “the epicenter of the housing crisis.”

As Antonia Jennings, CEO of the think tank, noted, “50% of England’s temporary accommodation population resides here, although only 15% of the nation’s populace lives in London.”

Additionally, rent prices in London exceed the national average by 60%, and there are currently 366,000 individuals in the capital waiting for social housing—greater than the entire household population of Leeds.

Sir Sadiq stated he is committed to collaborating with the government to “secure additional national assistance for the necessary level of new housing in London.”

He emphasized that investments in transportation infrastructure will facilitate the creation of thousands of new residences.

The government has reiterated its commitment to “confront the persistent and serious housing crisis.”

Experts caution that, while social and affordable housing is crucial, the capital is facing significant challenges in realizing these developments.

Professor Christine Whitehead from the London School of Economics highlighted that new housing regulations, a shortage of construction labor and materials, and housing associations lacking the funding to acquire more properties will pose significant hurdles in achieving the government’s targets.

Shadow housing minister David Simmons remarked: “We must ensure that these plans are effectively realized.”

He noted that restoring confidence in the housing market is crucial to overcoming London’s housing challenges.

According to Simmons, “There is feedback from builders, suppliers of construction materials, and the skills sector indicating that this is a demanding, if not insurmountable, challenge.”

He also pointed out the necessity for the right type of housing supply.

“There are many individuals who not only require social housing but also aspire to enter the property market. We must ensure diversity in the housing options available,” he stated.

Currently, over 70,000 homeless families in London inhabit temporary housing supplied by their local councils, typically in hostels or budget hotels lacking basic facilities.

Vicki, a resident from East London, has been living in temporary accommodation with her 17-year-old son for the past 21 weeks.

She emphasized the urgent need for increased action: “I’m in a hotel and see many families. We lack cooking and washing facilities, living in a single room. This has a ripple effect on education and impacts every aspect of life.”

Housing charity Shelter has contended that to alleviate waiting lists and eliminate the need for temporary accommodation, the government must construct 90,000 new social homes annually over the next decade—five times the number that Deputy Prime Minister Angela Rayner has pledged.

Mairi MacRae, Shelter’s campaigns director, noted that focusing on social housing is “an essential step in addressing the housing emergency and controlling homelessness,” while urging the government to expand its efforts.

Rayner, who also serves as the Secretary of State for Housing, asserted that the government’s intentions to build 180,000 new social homes in the next ten years will “shift the trajectory of the housing crisis.”

She called upon the social housing sector to unite in efforts to “turn the tide on the housing crisis together,” adding that this investment represents “the most significant enhancement to social and affordable housing in a generation.”