This investment, approved by Mayor of London Sadiq Khan, will provide a loan to Peabody for the delivery of the units by March 2032.

Alongside this announcement, City Hall has also published funding guidance for the first £324m round of the City Hall Developer Investment Fund, to be provided via the Greater London Authority’s Integrated Settlement.

The City Hall Developer Investment Fund will continue the work started by the Land Fund, focusing on using money in a flexible way to get stalled development sites moving again, especially those that can deliver new homes as quickly as possible.

Funding is available from 2026/27, and the GLA expects to select prioritised projects from this summer.

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“By working in partnership with housing associations like Peabody and making use of available funding, we are accelerating delivery even in the face of significant challenges,” said Sadiq Khan, Mayor of London.

“We must continue to work together so we can build a fairer London for everyone, where all Londoners have the opportunity of a home.”

Ian McDermott, CEO at Peabody, added: “Working in partnership with City Hall, the government and others allows us to plan with confidence and make the most of opportunities to build where homes are most needed.

“This support will help us keep a strong pipeline of new homes coming forward — so more Londoners can find a genuinely affordable place to live in the neighbourhoods they know and value.”