The largest developing housing associations in London have warned their development output could drop by a third unless they receive extra government support.

The G15 group, whose members collectively built 11,600 homes in 2021/22, have warned that restrictions to rent rises, increased borrowing costs, and the need to divert money towards improving existing homes and meeting building safety requirements mean future development is likely to fall sharply.

The group, which manages 770,000 homes, warns that a previous three-year rent freeze, plus a seven per cent rent cap, agreed shared ownership rent caps and the scrapping of rules on rent convergence – under which association rents are brought into line with council rents - has led to a £6.6bn loss in investment since 2016.