£1.5 billion for social and affordable housing in London

The Mayor of London has confirmed £1.5 billion to accelerate affordable and social housing across the city.

The new City Hall Developer Investment Fund (CHDIF) is making £1.5 billion available in very low-cost interest loans for housing associations.

City Hall says that housebuilding is still impacted by "the disastrous legacy of the previous government, high interest rates, the rising cost of construction materials, the impact of the pandemic and Brexit and Building Safety Regulator delays".

City Hall will deliver low-interest loans at 0.1 per cent for the first time for housing finance. These will provide additional support to help build more homes through innovative finance, helping to unlock challenging sites across London.

Since 2018, more than 25,000 council homes have been built, or are being built, with the help of City Hall funding.

The Mayor of London, Sadiq Khan, said: “This £1.5 billion investment from our new City Hall Developer Investment Fund will help us kickstart the delivery of more affordable homes.

“We’re doing something that hasn’t been done in decades – providing low-interest loans to build the affordable homes Londoners desperately need.

“There are so many good, affordable housing projects in our city that need some extra support to get going. These low-interest loans will help make these homes a reality.

“I will continue to work closely with Government, councils and other partners and do everything I can to accelerate the delivery of genuinely affordable homes as we continue to build a better, fairer London for everyone.”

Housing and Planning Minister Matthew Pennycook said: “Through our new 10-year £39 billion Social and Affordable Homes Programme, support for the City Hall Developer Investment Fund, £1.5 billion in funding for low-interest loans, and investment in planning capacity and capability, we’re giving London the tools it needs to address the severe housing delivery challenges it is facing.

“Working in close partnership with the Mayor, we are committed to delivering record numbers of social and affordable homes in the years ahead so that more Londoners can enjoy a decent, safe, secure and affordable home of their own.”