A new analysis of the housing market by the office of the Mayor of London shows that the City needs to build 66,000 new homes every year to meet its growing need, as demand continues to outstrip supply.
The new figures of housing need, calculated by City Hall through their Strategic Housing Market Assessment, also suggest that 65 per cent of these new homes would need to be affordable if they are to meet Londoners’ needs. “It serves as a stark warning that the capital’s housing crisis will spiral even further out of control without a profound new programme of government investment and action,” the Mayor’s office said in an announcement.
Mayor Sadiq Khan has been laying special emphasis on improving the housing scenario. The Mayor’s draft London Plan, due to be published in November, will include strong new measures and set ambitious targets for every London borough. It is roughly double the current rate of homebuilding, and goes alongside the Mayor's strategic target for half of new homes to be genuinely affordable housing.
City Hall modelling suggests a requirement for government to increase funding for affordable housing alone in London to around £2.7bn a year – more than five times current spending levels. There is adequate scope for the private sector to play an active role in meeting the housing demand in London.
Last November, the Mayor secured a £3.15bn deal with the government to start building 90,000 genuinely affordable homes by 2021 - around £0.5bn a year