London Mayor Sadiq Khan today unveiled a landmark £4 billion initiative aimed at significantly accelerating the delivery of genuinely affordable homes across the capital, a key step in addressing London’s persistent housing crisis. The programme, officially named the ‘Greater London Housing Accelerator’, sets an ambitious target: the creation of 25,000 new affordable homes by the year 2030.
The announcement was made by Mayor Khan at a press conference held at City Hall on June 10, 2025, where he detailed the multi-faceted funding structure designed to underpin this major housing drive. The £4 billion investment comprises contributions from several key sources, reflecting a concerted effort to pool resources for this critical challenge.
A significant portion of the funding, £1.5 billion, originates from the central government’s latest allocation of the Levelling Up fund, underscoring a degree of cross-governmental cooperation on the London housing issue. An additional £1 billion will be sourced through the Greater London Authority’s (GLA) established borrowing powers, leveraging the city’s own financial mechanisms. The remaining, and anticipated, £1.5 billion is projected to be leveraged through strategic partnerships with private developers and housing associations, mobilising external capital and expertise.
Addressing the Housing Crisis
London faces one of the most acute housing crises in the United Kingdom, characterised by high demand, soaring rental costs, and prohibitive property prices that have pushed homeownership out of reach for many residents. The lack of genuinely affordable housing stock is widely seen as a major impediment to the city’s social and economic well-being.
The Greater London Housing Accelerator is specifically designed to tackle this challenge by focusing on accelerating the rate of housebuilding, particularly on sites that can be brought forward relatively quickly. A core element of the initiative is the prioritisation of development on brownfield sites – previously developed land – and surplus public land across London. This approach aims to make efficient use of existing urban space while potentially reducing reliance on developing green spaces.
Programme Focus and Home Types
The initiative’s emphasis on brownfield and surplus public land is coupled with a clear mandate to deliver specific types of housing crucial for affordability. The 25,000 new homes targeted by the programme will include properties designated for both social rent and shared ownership.
Social rent properties are typically offered at significantly below market rates, providing vital secure and affordable housing for those on the lowest incomes. Shared ownership schemes, conversely, allow individuals or families to buy a share of a property (usually between 25% and 75%) and pay rent on the remaining share, offering a pathway to homeownership that would otherwise be inaccessible in London’s expensive market. The inclusion of both types reflects an effort to address affordability across a spectrum of needs.
Accelerating development on the identified land parcels is central to meeting the 2030 deadline. The £4 billion funding package is intended to provide the necessary financial impetus to overcome common barriers to development, such as site remediation costs or infrastructure requirements, thereby speeding up the construction process.
Joint Approach Signaled
Mayor Khan emphasised that this substantial investment and the strategic focus represent a crucial step in boosting London’s housing supply and improving affordability. He highlighted the collaborative nature of the initiative, particularly the significant contribution from the central government’s Levelling Up fund.
This joint approach between the Greater London Authority and central government is seen by many as a positive signal, indicating a shared recognition of the scale of the housing challenge in the capital and a willingness to work together to address it. Securing £1.5 billion from the Levelling Up fund is a notable achievement for the GLA in attracting central government investment for London’s specific needs.
The programme relies not only on public sector funding but also anticipates leveraging substantial investment from private developers and housing associations. This partnership model is critical to delivering homes at scale and tapping into the construction capacity of the private and third sectors. The projected £1.5 billion contribution from these partnerships underscores the intended collaborative ecosystem for the Accelerator.
Looking Ahead to 2030
The Greater London Housing Accelerator sets a clear target of 25,000 homes by 2030, requiring sustained effort and effective execution over the coming years. The initiative faces the inherent complexities of large-scale urban development, including planning processes, construction challenges, and market fluctuations.
However, the scale of the funding – £4 billion – and the clear focus on utilising brownfield and surplus public land, combined with dedicated targets for genuinely affordable tenures like social rent and shared ownership, position the Greater London Housing Accelerator as a significant and potentially transformative intervention in London’s challenging housing landscape. The success of the programme will be closely watched as the capital seeks viable solutions to provide homes for its growing population.
