London’s New Affordable Housing Strategy Aims to Boost Access for Low-Income Residents

London Mayor Sian Berry unveiled the capital's 2026 Affordable Housing Strategy on July 9, targeting a boost in affordable housing supply over the next five years. The plan prioritises delivering 50,000 affordable homes by 2031, with emphasis on low-income renters and first-time buyers, particularly in outer London boroughs such as Bexley and Havering.

This strategy arrives amid a housing affordability crisis where median rents in London have risen 35% above the national average since 2020, according to the Office for National Statistics. The city also faces a chronic shortage of affordable units, with demand far outpacing supply, pushing many households over 40% of their income towards rent.

Local Impacts on Renters and Buyers

For London renters, the strategy provides an immediate increase in affordable rental housing through council and Housing Association developments. The policy document states that 60% of new affordable homes will be for rent at below-market rates, targeting households earning up to £35,000 annually. This includes new projects already funded in Croydon and Newham, where schemes expect to add 2,000 affordable rental units by 2028.

First-time buyers, particularly young families in outer boroughs, are set to benefit from expanded shared ownership schemes and discounted sale homes. Outer London authorities anticipate approximately 15,000 new affordable home ownership opportunities, with boroughs like Bromley and Redbridge committing funds to local housing trusts to accelerate delivery.

Funding, Data and Next Steps

The Greater London Authority (GLA) will allocate £1.2 billion from the 2026-2029 budgets towards affordable housing grants, combining mayoral funds with government and private sector contributions. The strategy cites a 20% year-on-year increase in affordable housing starts since 2024, projecting this expansion rate to reach the 50,000-home goal.

Policy analysts note that the GLA’s focus on outer London boroughs reflects efforts to address extended housing pressures beyond central districts, where market prices remain prohibitively high. Community groups underscore that while the targeted numbers represent progress, waiting lists for affordable housing currently average 5 years in many boroughs, highlighting the scale of need.

Implementation steps include finalising planning guidance revisions to expedite affordable housing approvals and establishing a dedicated Affordable Housing Delivery Board with borough representatives. Borough councils are expected to submit updated housing plans aligning with the strategy by the end of 2026, with the mayor reporting progress to the London Assembly annually.

London residents affected by the housing shortage can anticipate gradual access improvements over the next five years. However, the timing and allocation details will vary by borough, shaped by local development capacity and council actions.