London needs 90-100,000 new homes each year to tackle the ongoing shortage of housing in the capital – double the number currently being built.
Research from the London Housing Directors Group (LHDG) at London Councils and the G15 group of London’s largest housing associations demonstrates that the market is unlikely to meet the housing delivery targets in the new London Plan.
The research, which draws on an analysis carried out by Savills, has been published in the interim report Delivering on London’s Housing Requirement.
It indicates a need for 90,000-100,000 new homes each year to meet demand and improve affordability, a number higher than the 52,000 homes recently outlined in the new London Plan. The most recent Government data shows there were only 41,718 completions in London in 2019/20.
The forecasts for 2021/25 also highlight that private housebuilders are focused on the upper mainstream price bands, while London’s demand for affordable housing is almost eight times greater than the number of homes forecast to be delivered (7.6 times greater than supply, compared to the national average of 2.6 in England).
The LHDG and G15 argue this shows the importance of growing the capital’s social housing sector and securing increased Government investment in affordable housing for those on low and middle incomes.
‘London’s housing crisis has dragged on for far too long and there’s no end in sight,’ said Joanne Drew, co-chair of the LHDG.
‘Due to total market failure and years of underinvestment at a national level, there simply aren’t enough affordable homes being built – leaving London with enormous housing pressures and the highest homelessness rates in the country.
‘Alongside our housing association partners, boroughs are determined to build affordable homes at mass scale for hard-pressed Londoners. This is crucial for helping us achieve the government’s targets on reducing homelessness, and would also give a shot in the arm to London’s economic recovery from Covid-19. But we need an immediate boost to councils’ powers and resources to make this happen.’