Homes for Londoners: Affordable Homes Programme 2016-2023

The Mayor published his Homes for Londoners: Affordable Homes Programme 2016-2021 funding guidance in November 2016.

This will help housing associations, community groups, London boroughs and private developers to build new affordable homes in London. It explains how to get funding from the Mayor and any rules that apply.

In June 2018, the Mayor published an addendum to the funding guidance. The addendum takes into account the additional £1.67bn the Mayor secured from central Government in the Spring Statement 2018, which will contribute to the Mayor’s target to deliver 116,000 affordable starts by 2022 alongside the £3.15bn the Mayor secured previously. It should be read in conjunction with the Homes for Londoners: Affordable Homes Programme 2016-2021 funding guidance and encompasses four elements:

• extending the programme into 2021-22
• increases to the set grant rates for the Approved Provider route
• a minor change to the Negotiated route
• a new strategic interventions funding option

The types of affordable homes the Mayor is funding include:

• London Affordable Rent - for people on low incomes
• London Living Rent - helping Londoners on average incomes save for a deposit to buy their first home
• London Shared Ownership - for people who want to buy but can't afford the open market

If you have any questions, check our FAQs. If you can't find the answer to your question, email: [email protected]. If you are already an Investment Partner, contact your area manager.

Funding is available to local authorities and registered providers (housing associations) who have Investment Partner status with the GLA. Bids must be submitted through the GLA’s Open Project System (OPS), which is open for continuous bidding.

Register and learn more about OPS, or sign in to OPS.

Find out more about becoming a GLA Investment Partner.

On 13 July 2017, the Mayor announced funding allocations following the initial bidding round. The allocations will see an estimated £1.7bn invested in 49,398 genuinely affordable homes being built, with new homes in all London boroughs and the City of London.

As set out in the 2016-21 Affordable Homes Programme Funding Guidance, the GLA updated its London Affordable Rent weekly rent benchmarks on an annual basis, updating each one by the increase in CPI for the previous September plus 1%.

The weekly rent benchmarks from 2017/18 to 2022/23 are shown in the table below. For subsequent years, providers should apply their own updates to the benchmarks in line with the social housing rent-setting guidance published by the Regulator.

Contracts

Each of the funding routes has its own funding agreement, with variants for provider type. The funding agreements are in a standard form and not subject to negotiation. The GLA will arrange for engrossments to be sent out to successful partners.

• Assumed Total Development Costs - as part of an assessment for state aid compliance for the Affordable Housing Programme 2016-21 the GLA conducted analysis and produced an evidence base of assumed development costs. Further information is available on request.
• FAQs were updated on 9 May 2017
• 2016-21 allocation information
• Affordable Housing Starts and Completions

• Key information about the home
• Summary of costs
• Key information about shared ownership