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London boroughs urge government to boost funding for estate regeneration amid housing crisis

Sunday, 16 November 2025 5:03AM UTC

London boroughs are calling for increased financial support and policy reforms to accelerate estate regeneration projects, aiming to address the city's worsening housing crisis and improve residents' quality of life.

London boroughs have called for a renewed focus on regenerating council estates as a critical strategy to address the capital’s deepening housing crisis. According to a new report titled A Decade of Renewal: the Contribution of London Estate Regeneration, produced by London Councils and the London Housing Directors’ Group, revitalising existing estates can play a pivotal role in boosting the supply of social housing while modernising aging stock and improving residents’ quality of life.

The report underscores that regeneration, which encompasses initiatives ranging from refurbishing existing buildings to wholesale demolition and rebuilding, has the potential to deliver 10,000 new council homes across nine key estates surveyed. This approach not only helps increase housing supply but also creates employment and skills development opportunities for local people, raises environmental standards, and enhances health and well-being through improved housing quality, better play spaces, and greater access to local services.

Despite these promising benefits, boroughs are facing significant financial constraints that threaten to restrict their ability to scale up regeneration efforts. London Councils’ analysis points to an impending real-terms reduction of £269 million in council housing repairs and investments over the next four years, exacerbating challenges such as homelessness and poor housing conditions. With limited resources available, boroughs stress the urgent need for greater “funding firepower” if stalled regeneration schemes are to be revived and expanded.

As the government prepares its forthcoming Budget, London Councils is advocating for targeted measures to stabilise social housing finances. Chief among its proposals is the introduction of a social rent convergence rate set at a minimum of £3 per week. This adjustment aims to harmonise social rents more quickly across the capital, promoting fairness among tenants in similar properties, and is projected to generate an additional £588 million for council housing budgets across London over five years beyond current policies linking rent increases to CPI plus 1%.

Furthermore, borough leaders are pressing for nationally or regionally coordinated regeneration programmes coupled with flexible, long-term funding streams. Presently, they highlight restrictions within the Social and Affordable Homes Programme, the principal government source for affordable housing funding, that limit support for replacement homes and the redevelopment of existing estates. A more holistic and strategic funding approach could unlock stalled projects, helping align efforts with wider government priorities on growth, health, and net zero targets.

Prominent local government figures articulate these concerns and aspirations clearly. Cllr Grace Williams, London Councils’ Executive Member for Housing & Regeneration, told the press that regenerating existing estates must be “a core part” of tackling London’s housing crisis, but stressed the pressing need for additional resources to unlock development and ramp up regeneration activity. Joanne Drew, Co-Chair of the London Housing Directors’ Group, echoed this view, highlighting boroughs’ determination to deliver modern, sustainable council housing yet acknowledging significant financial and policy barriers.

This call for enhanced funding and reform sits alongside wider debates on social housing policy. For instance, London Councils has also argued for reforms to the Right to Buy scheme, which they say has depleted social housing stock and strained homelessness services. They propose devolving decision-making powers over Right to Buy to local authorities to better tailor policies to local housing needs and protect valuable council housing stock.

While estate regeneration is championed as a crucial tool, it is not without controversy. A London Assembly report has noted that some regeneration projects, despite increasing the overall number of homes, have seen a decline in social rent properties, raising community concerns about affordability and displacement. The Assembly has recommended early and comprehensive resident engagement, including independent ballots on demolition plans, to improve transparency and trust in regeneration processes.

Other local initiatives complement the regeneration agenda. For example, the City of London Corporation has committed substantial investment, around £110 million, towards the maintenance, refurbishment, and safety improvements of its social housing estates. These programmes focus on critical repairs and upgrades, ensuring existing homes remain safe and sustainable while broader regeneration proposals take shape.

The housing crisis in London remains complex and multifaceted, with a backlog of unmet demand and barriers to rapid development. Reports by the London Assembly highlight persistent challenges such as declining new home building rates and growing social housing waiting lists, underscoring the urgency of coordinated policy responses.

Overall, boroughs are advocating a two-pronged approach: a strategic, well-funded push to regenerate and enlarge the social housing estate stock, alongside reforms and investments that sustain and improve existing homes. The success of these efforts could significantly impact London’s capacity to provide affordable, high-quality housing in the decades ahead, but depend heavily on the government’s willingness to unlock the necessary financial and policy levers in the imminent Budget.

📌 Reference Map:

^[1] (London Post) - Paragraphs 1, 2, 3, 4, 5, 6, 7, 8
^[2] (London Councils) - Paragraphs 1, 2, 3
^[3] (London Councils) - Paragraphs 1, 2, 3
^[4] (London Councils) - Paragraph 7
^[5] (London Assembly) - Paragraph 8
^[6] (City of London Corporation) - Paragraph 9
^[7] (London Assembly) - Paragraph 10

Source: Noah Wire Services

More on this

https://london-post.co.uk/london-boroughs-seek-funding-firepower-to-tackle-housing-crisis-through-investment-in-existing-estates/ - Please view link - unable to able to access data
https://www.londoncouncils.gov.uk/news-and-press-releases/2025/decade-renewal-contribution-london-estate-regeneration - A report from London Councils and the London Housing Directors' Group highlights the benefits of regenerating council estates in London. It suggests that such regeneration can increase housing supply, modernise existing homes, and provide new employment and skills opportunities for residents. The report also notes improvements in environmental standards and better health and well-being through enhanced housing quality and access to local services. However, it emphasises the need for additional funding to overcome challenges and expand regeneration plans.
https://www.londoncouncils.gov.uk/news-and-press-releases/2025/london-boroughs-seek-funding-firepower-tackle-housing-crisis-through - London boroughs are calling for increased funding to tackle the housing crisis through investment in existing estates. A report from London Councils and the London Housing Directors' Group argues that regenerating council estates is essential for increasing housing supply and modernising homes. The report highlights potential benefits such as new employment opportunities, improved environmental standards, and better health and well-being for residents. It also underscores the need for more funding to overcome challenges and expand regeneration efforts.
https://www.londoncouncils.gov.uk/news-and-press-releases/2025/reform-right-buy-lay-foundations-better-future-social-housing - London Councils advocates for reforming the Right to Buy scheme to improve the future of social housing in the capital. The organisation argues that the current policy contributes to the housing crisis and pressures on homelessness services. It proposes devolving Right to Buy decisions to local authorities to better address community housing needs. The report also highlights the depletion of social housing stock and the need for increased investment in affordable homes to address homelessness.
https://www.london.gov.uk/press-releases/assembly/knock-it-down-or-do-it-up - A report from the London Assembly's Housing Committee examines estate regeneration schemes and their impact on social housing availability. It finds that while regeneration leads to more homes being built, there is an overall decline in those available for social rent. The report provides guidance for community groups, councillors, and housing professionals on improving the regeneration process, including recommendations for early and comprehensive engagement with residents and holding independent ballots on demolition decisions.
https://www.cityoflondon.gov.uk/services/housing-and-homelessness/major-works-programme - The City of London Corporation has committed approximately £110 million to its Major Works Programme, focusing on the maintenance, refurbishment, and improvement of its social housing portfolio. The programme includes window repairs, re-roofing, electrical rewiring, heating replacements, concrete and external fabric repairs, fire safety improvements, energy efficiency works, and estate improvement works. These initiatives aim to enhance the quality and safety of social housing in the area.
https://www.london.gov.uk/who-we-are/what-london-assembly-does/london-assembly-press-releases/tackling-londons-housing-crisis-report-shows-how-unlock-development-london - The London Assembly's Planning and Regeneration Committee has published a report titled 'Unlocking Development in London,' making recommendations to the Mayor on delivering high-quality and affordable homes. The report highlights challenges such as a decline in new homes completed annually and a significant number of Londoners on council waiting lists for social housing. It calls for measures to unlock development and address the housing crisis in the capital.

Noah Fact Check Pro

The draft above was created using the information available at the time the story first emerged. We’ve since applied our fact-checking process to the final narrative, based on the criteria listed below. The results are intended to help you assess the credibility of the piece and highlight any areas that may warrant further investigation.

Freshness check

Score: 10

Notes: The narrative is fresh, published today, and has not appeared elsewhere.

Quotes check

Score: 10

Notes: The quotes from Cllr Grace Williams and Joanne Drew are unique to this report, with no prior online matches found.

Source reliability

Score: 6

Notes: The report originates from the London Post, a local news outlet. While it provides valuable information, its credibility is lower compared to more established media.

Plausability check

Score: 8

Notes: The claims about the housing crisis and the need for regeneration are plausible and align with known issues in London. However, the lack of coverage by more prominent media outlets raises some questions.

Overall assessment

Verdict (FAIL, OPEN, PASS): OPEN

Confidence (LOW, MEDIUM, HIGH): MEDIUM

Summary: The narrative presents fresh and plausible information, with unique quotes and a timely publication date. However, its origin from a less established source and the absence of coverage by more reputable outlets warrant further verification. The overall confidence in the accuracy of the information is medium.

London housing
Estate regeneration
Social housing funding