The Greater London Authority is considering funding the building of new homes for social rent in the 2015/18 affordable homes programme.
Three years after the government indicated it would no longer provide direct cash for traditional social homes, it is understood the GLA is concerned over high housing costs in the capital and may give grants to housing associations to build a third of their properties at social rent.
Under the £1.8 billion affordable homes programme, developing landlords currently only receive grant from the government to build homes at higher ‘affordable rents’.
But three large London housing associations confirmed the GLA, which took on responsibility for London housing investment in 2012, may give grants to associations presenting plans to build socially rented homes, alongside new affordable rent and shared ownership homes.