London Allocates Housing Grants to 12 Inner Boroughs, Excluding Outer Areas

The Greater London Authority's 2026 Housing Grant Programme channels £850 million toward new affordable homes in 12 specified boroughs, according to the GLA budget paper released on 7 July. Tower Hamlets, Newham and Hackney receive the largest shares for estate renewal projects already underway. Residents in those areas stand to gain from expanded waiting list access once units are completed in 2028.

National housing targets set by the Ministry of Housing, Communities and Local Government prompted the GLA to revise its distribution formula this year. The adjustment responds to updated household formation data published in the 2025 London Housing Needs Assessment. Outer London councils such as Bromley and Havering fall outside the priority list because their existing stock met the revised density thresholds.

Effects on Local Households

Households on council waiting lists in the funded boroughs can expect earlier offers for one- and two-bedroom flats once construction contracts are let. Families in non-priority boroughs continue to rely on existing stock or private rentals without new GLA-backed supply in the immediate pipeline. Transport costs for those commuting from outer areas into central jobs remain unchanged by the housing decision.

Local authority housing officers in the 12 selected boroughs will process applications under the revised eligibility rules starting in September. The GLA states the policy will deliver 4,200 additional units by the end of 2029. Residents outside the designated zones receive no corresponding increase in grant-funded starts this financial year.

Next Steps for Delivery

Borough planning committees must approve individual site schemes before drawdown of the grant tranches. The GLA will publish quarterly progress reports on the funded estates beginning in October. Residents can check their borough's allocation status through the GLA housing dashboard updated each month.