London boroughs have identified enough development opportunities to deliver more than 50,000 new council homes over the next decade, provided sufficient government funding is made available.
The findings, published by London Councils, underline the scale of local authority ambition to tackle the capital's deepening housing and homelessness crisis through a new generation of council housebuilding.
According to the cross-party organisation, which represents all 32 London boroughs and the City of London Corporation, the proposed pipeline would increase London's existing council housing stock by almost 15%.
The analysis is based on submissions made by boroughs to the London Social and Affordable Homes Programme, which is set to receive £11.7 billion between 2026 and 2036. However, London Councils estimates that delivering the full pipeline of council homes would require grant funding of approximately £12.3 billion.
London boroughs currently own and manage around 390,000 council homes. If the identified projects proceed, the additional 50,000-plus homes would represent one of the largest expansions of council housing in the capital for decades.
The announcement comes as councils face mounting pressures from rising homelessness, growing housing waiting lists and increasing costs associated with temporary accommodation.
London Councils says boroughs are committed to working alongside central government and the Greater London Authority (GLA) to maximise delivery through the affordable homes programme. The organisation welcomed the government's recent investment in social and affordable housing, as well as confirmation that council-led projects will account for 60% of homes delivered through the first phase of LSAHP allocations.
The capital has already established itself as the leading region for council-led housing delivery. Government figures show that half of all council homes built in England during 2024-25 were delivered in London, demonstrating the impact of devolved powers and local authority leadership.
Boroughs are now collaborating with partners across the housing sector to sustain momentum, improve delivery rates and ensure new homes are allocated to residents with the greatest need.
While welcoming recent funding commitments, London Councils argues that significantly more support will be required if boroughs are to meet housing demand at scale.
The organisation is urging ministers to consider a package of financial reforms ahead of the Autumn Budget, including:
- Increased grant funding for council-led housing schemes.
- Reforms to Housing Revenue Account (HRA) rules.
- Access to low-interest borrowing for councils.
- A reset of the London Formula Rent system to better reflect the capital's high housing costs.
- Additional funding programmes to support local authority acquisitions of existing homes.
London Councils believes these measures would strengthen councils' ability to invest in both new development and the acquisition of existing properties, helping to reduce reliance on expensive temporary accommodation and support wider housing market recovery.
Alongside new-build programmes, boroughs are increasingly using funding from the Local Authority Housing Fund and the Social and Affordable Homes Programme to acquire existing homes.
These acquisitions have enabled councils to convert market housing into affordable homes, unlock stalled developments and secure more stable accommodation options for households who might otherwise face homelessness.
Cllr Anthony Okereke, London Councils' Executive Member for Housing & Homelessness, said:
"These figures demonstrate boroughs’ ambitious commitment to building the next generation of council housing across the capital.
"London is grappling with the most severe housing and homelessness emergency in the country. Boosting the number of council homes is a key part of tackling this crisis – and London boroughs have a proud track record of delivery in recent years.
"Boroughs want to build more. We have identified a pipeline of over 50,000 new council homes we could deliver in the coming years. These are specific development opportunities where we are seeking funding for new council housing.
"We have the expertise, we have the vision, we have the determination – we now need the investment to make it happen."
With housing demand continuing to outstrip supply across the capital, borough leaders argue that council housing will play a central role in addressing affordability challenges, reducing homelessness and creating long-term housing security for London residents.
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