The Centre for London think-tank has published Borough Builders, a report on boroughs' capacity to deliver new homes.
Commenting on the report, Cllr Darren Rodwell, London Councils' Executive member for housing and planning, said:
"Boroughs are committed to delivering the affordable homes that Londoners need. But housebuilding requires substantial, long-term funding, which is why the Housing Revenue Account borrowing cap should be scrapped so that councils can borrow to build homes in the numbers their communities need. Ending restrictions on the use of Right to Buy receipts would also help ensure this money can go into replacing sold-off council homes.
“In a climate where these restrictions remain in place and where London boroughs continue to have their funding reduced, it is nigh on impossible to deliver council homes, let alone on the scale required. The government urgently needs to empower boroughs to build – freeing local authorities to borrow prudently and invest in new homes is the surest way to boost supply.
“London requires housing across a mixture of tenures and council homes are a crucial part of this. The chronic lack of housing available for social rent exacerbates homelessness and increases the housing benefit bill. London’s boroughs want to build council homes to address this, but face immense barriers that only the government can remove.
“In the past year, boroughs have approved planning permission on 55,000 new homes and work with a range of partners to maximise delivery. We’re also pursuing innovative solutions, such as setting up a pan-London modular housing company that will provide high-quality accommodation for homeless people.”