London mayors £6 billion housing fund - what does it mean for councils?
By Tilly O'Brien 26th Aug 2026
The Mayor of London, Sir Sadiq Khan, has said that he is putting £6 billion aside to help councils "build the homes [the] city desperately needs, with a major focus on new social-rent and council homes".
He said: "When councils have the funding and certainty they need, they can deliver genuinely affordable homes at scale."
However, the money has not been allocated to any specific projects yet.
In an interview with ITV News, the London Mayor added: "I've had huge interest from council's across London.
"The amount of interest from councils exceeds the amount of money we've been given, even though it's a record breaking amount.
So over the next few weeks, we will work with all 32 boroughs to work out with them how many homes they can build and how quickly they can build them so we can address, finally, this housing crisis."
He continued: "The housing crisis wasn't created overnight and it won't be solved over night either."
According to the government, one of London's biggest problems is the shortage of affordable homes.
Locals recently created a petition calling on Richmond Council to deliver more affordable homes across the borough, and the council backed plans for more affordable homes following the publication of the London Mayor's Draft London Plan in July.
At the time, the authority said: "Richmond is committed to playing its part in delivering new homes, including affordable homes, through its own growth ambitions and by supporting well-planned development in the right places.
"However, the Council will examine whether the proposed 31% increase in Richmond's housing target reflects what can realistically be delivered in a borough with significant heritage, land availability, environmental and flood-risk constraints."
Nub News has contacted Richmond Council for comment.
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