London housebuilding rates fall by 84% in a decade

"Housebuilding in London's private housing sector has fallen by 84% since 2015, despite the capital needing 88,000 new homes annually, a new study has found. New research from consultants Molior found construction work began on 5,547 new private-sector residential homes in 2025, compared with 33,782 in 2015. Lord Bailey, a member of the London Assembly, said London's housing situation had gone from "difficult to devastating" and ""ordinary Londoners are suffering the most"."

""This is not just a housing crisis anymore, it is a crisis of stability, opportunity and dignity." "I warned years ago that the mayor's approach would lead to a collapse in housebuilding. Sadly, that is exactly what has happened." Some 18,326 homes are expected to be completed in London by the end of this year, amounting to around half of the homes currently under construction. A further 14,053 homes are not expected to be completed until 2027 or later, which represents just 8% of the government's 176,000-home, two-year target for London. This is a shortfall of 92%."

"Construction work has also been halted on 5,009 homes across 51 development sites in the capital. Molior suggests this may be due to building contractors "going bust" because of high construction costs or putting the work on hold deliberately due to a weak sales market. The firm added just 8,436 new homes were sold in London during 2025, which it described as "directly contributing to fewer construction starts". To meet government targets, at least 22,000 homes would need to be sold each quarter."

Private-sector housebuilding in London fell 84% between 2015 and 2025 while the capital requires about 88,000 new homes annually. Construction work began on 5,547 private-sector residential homes in 2025, compared with 33,782 in 2015. Some 18,326 homes are expected to be completed by the end of this year, roughly half of those under construction. A further 14,053 homes are not expected until 2027 or later, representing just 8% of a 176,000 two-year target and creating a 92% shortfall. Construction has halted on 5,009 homes across 51 sites, and only 8,436 new homes were sold in 2025.

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