The new government is working hard to increase housing supply, but there is still a long way to go in the capital city. Last week, Angela Rayner intervened in Swale Borough Council’s decision to build 8,400 new homes near Sittingbourne. This move was praised by former Southwark leader Peter John, who emphasized the government’s commitment to housing delivery.
During a recent speech at the Centre for London conference, Sadiq Khan described the current housing situation in the capital as the most challenging since the 2008 financial crisis. He called for more public funding to address the housing crisis. Jules Pipe, the Mayor’s deputy for planning, expressed doubts about the government’s target of 300,000 new homes per year, including London’s share of 81,000 homes annually.
The current rate of new home construction in London is only around 30,000 per year, far below the target. The completion of affordable homes is also lagging, with data showing a concerning trend. The Housing Forum’s Anna Clarke described the situation as “dire.”
Angela Rayner has adjusted London’s annual target from 100,000 to 81,000 new homes, calling it ambitious but achievable. Efforts are being made to streamline the planning process with a new London Plan to facilitate development. City Hall is working with boroughs and developers to speed up the distribution of funds from the Affordable Homes Programme.
Despite these efforts, public funding remains crucial to address the housing crisis. Deregulation and market forces can only do so much to increase affordable housing supply. Many Londoners are still in temporary accommodation or on social housing waiting lists. The Mayor has acknowledged that the revised affordable housing target may not be met.
Council finances are strained, and housing associations are facing increased costs for safety upgrades. The delay in new construction is impacting first-time buyers who are stuck in expensive rental properties. Without significant public investment, the housing situation in London is unlikely to improve significantly.
The ambitious target of 81,000 new homes annually is facing challenges, but efforts are ongoing to address the housing crisis in the capital. Collaboration between City Hall, boroughs, and developers, along with increased public funding, will be crucial in achieving the goal of providing affordable housing for all Londoners.
