Communities and Local Government Secretary, Eric Pickles announced £3 billion of funding for the Greater London Authority for housing and regeneration in London.
From this April, and in line with a commitment to decentralise power away from Whitehall, the Mayor of London - and not Ministers - will be accountable for the Capital's affordable housing programmes, including key development sites like the Greenwich Peninsula, and east London's Olympic legacy.
The £3 billion funding supports the Mayor's four year commitment to build 55,000 affordable homes by March 2015, and to bring 45,000 existing social homes up to standard across London. It also supports the Mayor's plans for the Olympic Park.
The current Olympic land and debt deal, first agreed in March 2010, will also be replaced by new receipt sharing arrangements for the Olympic Park to reflect the devolution of Olympic legacy to the Mayor and to protect the interests of the taxpayer.
Local Government Secretary, Eric Pickles said:
"This settlement hands real power to London allowing Londoners to manage their own affairs. It goes hand in hand with the new localism powers and spending freedoms we are handing councils around the country so they can be as efficient and effective as possible with public funds.
"The lasting legacy from the Olympics will showcase the regeneration and house building achievements that ensures London remains a truly great city."
The Welsh Government has allocating more than £40 million to housing and regeneration and in doing so, has given a firm indication of to its commitment to funding capital projects.
Finance minister Jane Hutt published the second supplementary budget for 2011/12 and announced:
The Scottish Government has pledged to provide an additional £87 million for housing over the next four years.
Finance Secretary John Swinney said there would be 'substantial additional funding across our infrastructure investment programme'.
Previously, the Scottish Government has promised to build 30,000 affordable homes during this Parliament term. The additional funding means the planned 30% cut to the affordable housing supply budget has been restored by 12%.
John Swinney said:
"We are on track to meet our target, but I confirm today that, in total, we will provide additional support to the housing sector valued at £97 million over four years."
In January he announced £10 million of extra funding for council housing. The remaining £87 million will comprise £45 million for the affordable housing budget from 2012/13 to 2014/15 and £42 million to fund loans and equity investment for housing over the spending review period.