Move could open new joint-venture and long-lease potential for housing finance investors in the Square Mile
The City of London Corporation is examining whether to bring in external investors to help finance future housing schemes, as it confronts rising repair costs and a significant funding gap across its estates.
The Corporation, which owns and manages around 1,800 social rented homes and 900 leasehold properties across the capital, estimates it needs £205 million to remedy disrepair and ensure buildings meet current fire and electrical safety standards. Many blocks are understood to fall below industry benchmarks for condition and decency.
The proportion of its homes classified as “non-decent” has almost doubled in a year, rising from 9.6% to 17.6%. The Corporation has attributed much of this increase to delays in large-scale refurbishment schemes, which it says are moving forward.
One of the largest projects is the Grade II/Grade II*-listed Golden Lane estate, where major refurbishment has been delayed for years and is now expected to cost more than £100 million. The Corporation faces a shortfall of about £84 million across its housing programme, the Financial Times reported.
City of London explores outside investment for housing projects https://t.co/jZLJ3bKdFZ
— Financial Times (@FT) December 9, 2025
Chris Hayward (pictured right), the City’s policy chair, has been considering long-term funding options, including outside capital, after improvements to some assets are said to have made them more attractive to investors. Any such arrangements would be confined to new developments and redevelopment schemes, rather than the existing stock.
Options understood to be under review include partnering with a private developer or granting long leases over certain sites for redevelopment. If pursued, this would mark the first time in its near 1,000-year history that the Square Mile’s housing has relied on third-party investment.
In a statement to the FT, the Corporation said it was “already investing over £110 million in our 12 housing estates” and “delivering wide-ranging improvements including new windows, kitchens... and electrical enhancements”.
“We will provide further substantial investment through our housing improvement plan, which is currently being developed,” it added.
“In common with all social housing providers, we have to ensure we have viable, long-term solutions to allow us to continue to invest in our housing and provide affordable homes and that requires us to carefully consider the viability of all options for investment. This includes potential partnerships with developers and investors.”
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