The 'Affordable' Housing Programme in London & How The Cost of Building Homes Has Almost TripledPosted: 26th March,2021
The ‘Affordable’ Housing Programme in London & How The Cost of Building Homes Has Almost Tripled.
The cost of building affordable homes in London using a new round of government cash will almost triple.
The cost of building a home under the ‘Affordable Homes Programme’ in London has increased from £45,500 per house to £115,000 per house.
A spokesperson for the mayor’s office said Brexit and the current cladding crisis has contributed to an increase in costs. The majority of the new properties “will be the social rented homes London most desperately needs” which “require a higher level of grant funding.” The mayor has come under a lot of scrutiny from the GLA (Greater London Authority Conservative group), stating the mayor is “failing Londoners.”
£4.8 billion of funding was obtained for the first programme which covered 2016-2023 and the second overlapping programme 2021-2026. 151,000 homes will be built and a total of 69,000 have been completed or are under construction. The mayor’s spokesman continued “Over the last 5 years, the mayor has hit every one of his annual delivery targets agreed with the government. While the funding from central government for affordable housebuilding in London remains woefully inadequate, the mayor is confident in hitting his target of starting 82,000 new genuinely affordable homes between 2021-2026.”
The £8.8bn secured from the government to build the homes in London since 2016 is just over 37% of the total funds handed out around the UK under two programmes.
The mayor’s office claimed that there has been “significant” increase in the price of building homes because of things like the availability of certain materials and shortages of skilled construction workers. Also, a large factor contributing to this problem is the need to replace the cladding on all properties following the tragic Grenfell fire.
Andrew Boff the GLA Conservative Housing Spokesman, said “Sadiq Khan’s decision to slow down City Hall house-building is scandalous. London has a fantastic deal from the government. The mayor is failing Londoners by squandering this golden opportunity to deliver the homes our city so desperately needs.”