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-Rising build costs, post-Grenfell regulations and growing maintenance liabilities pushed housing associations out of the market. -Developers were left without partners, stalling entire development pipelines.
-In late 2025, the GLA introduced emergency measures allowing grant funding on S106 units above the first 10% of any scheme. -The new funding round officially opened on 24 February 2026.
A new 10-year rent settlement, 10-year Affordable Homes Programme and stronger social rent support are now in place. Together, these reforms aim to restore RP confidence and get housing starts moving again.
– From April 2026, the National Housing Bank will provide very low-cost loans to registered providers, with 60% of its capacity ring-fenced for London — giving housing associations the firepower to accelerate new development.
– London is seeing a rare convergence of policy, funding and political will. -Early signs show strong RP appetite to re-engage, pointing to a meaningful rise in affordable housing starts in the near term.
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