"Sadiq Khan has known for a while that he has a problem with housebuilding in London. But last week a consultancy published figures about the scale of the problem, which prompted full-scale alarm in City Hall and Whitehall. The analysis from Molior showed that new housebuilding in the capital had collapsed. Only 40,000 homes are under construction two-thirds the normal rate and in the first three months of the year builders started work on just 3,248 private sector units."
"When Khan became mayor he increased the amount of affordable housing that developers had to include to qualify for the fast-track approval process from 20% to 35%, or 50% for developments on industrial or public land. He also tightened the definition of affordable housing so it applied mainly to the cheapest rented homes and those being sold under shared ownership schemes. For a while it worked. Although overall housebuilding levels fell, the number of social and affordable homes went up. In 2023, builders began work on more than 116,000 affordable homes in London and more council houses than at any time since the 1970s."
New housebuilding in London has sharply declined, with only 40,000 homes under construction, about two-thirds of the normal rate, and just 3,248 private sector units started in the first quarter. Increased affordable housing requirements for fast-track approvals raised thresholds from 20% to 35%, and to 50% on certain land, while tightening the definition toward cheapest rented homes and shared ownership. Initially social and affordable housing starts rose, exceeding 116,000 in 2023 and delivering more council housing than at any time since the 1970s. Rising inflation and sharply higher interest rates pushed up building costs, undermining developers' business cases and stalling projects.
Read at www.theguardian.com
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