London (Parliament Politics Magazine) – Labour MPs have urged London Mayor Sadiq Khan to maintain London’s affordable housing targets, warning cuts would worsen homelessness and inequality.
As reported by The Guardian, ministers and Sir Sadiq Khan are facing pressure from MPs to abandon plans to cut affordable housing targets aimed at reviving home building.
Parliamentarians have raised concerns over proposals by housing secretary Steve Reed and Mr Khan to tackle a sharp fall in new housing projects across London.
Under plans being considered by Mr Reed and the London mayor to allow developers to secure fast-track planning approval by pledging to deliver 20% affordable homes instead of 35%.
Labour MPs are expected to press the housing secretary and Mr Khan in the next few weeks to review the plan ahead of its formal announcement.
What did Florence Eshalomi say about London’s housing crisis?
Florence Eshalomi, the Labour chair of the housing select committee, stated,
“Solving the housing crisis relies not just on how many new homes we build, but also on their affordability. One of the main drivers of the crisis we are in has been the failure over many decades to build homes that are within reach of local people.”
She said,
“This problem has been particularly acute in London, where all too often we have seen developers prioritise profitable luxury units over housing that meets the needs of people already living here.”
Ms Eshalomi added,
“We must break with the failed status quo and build affordable homes that meet the needs of our communities.”
How did Labour MPs respond to London’s housing crisis?
Stella Creasy, the Labour MP for Walthamstow, stated,
“Walthamstow has been struggling with the impact of development for years – whether in housing or in the increase in rents it causes by driving gentrification – as housing costs are the reason we have such high levels of poverty.”
She added,
“We desperately need genuinely affordable housing and protections for tenants – I hope the mayor will hold firm that these targets matter.”
An unnamed Labour MP raised their worries, saying,
“We understand there is a crisis in London housebuilding, but there must be a way to solve it which does not involve letting developers get away without decent levels of affordable housing.”
What did Mairi MacRae say about developers and social housing?
Mairi MacRae, the director of campaigns and policy at Shelter, stated,
“While developers are allowed to wriggle free of their responsibilities to build their fair share of social homes, communities will continue to suffer. Families will be forced to continue enduring appalling conditions, watching damp and mould climb the walls with no hope of a secure home on the horizon.”
What did a government source say about London’s housing crisis?
A government source stated,
“Housebuilding in London is clearly in crisis. Since 2020, the number of homes under construction for private sale or rent at any one time has fallen by a third, to around 40,000 today – and just over 3,000 affordable homes were started across the city in 2023-24.”
They said,
“We’ve already increased London’s funding for the affordable homes programme compared to the previous government. But with so many Londoners stuck in temporary accommodation or on housing waiting lists that take years, we have to look at every lever to tackle the housing emergency we’ve inherited,”
adding,
“That’s why we are working with the mayor on getting the capital building again, including the social and affordable homes Londoners desperately need.”
What did Sadiq Khan’s spokesperson say about London housebuilding?
A spokesman for Sir Sadiq said the mayor’s focus was to “get as many affordable homes built as possible.”
He stated,
“The mayor and Secretary of State met recently to discuss the challenging conditions facing housebuilding in London. The disastrous legacy and underfunding from the last Government led to record construction costs, high interest rates, and lengthy delays from the Building Safety Regulator, which created a perfect storm leaving the capital facing the worst conditions for housebuilding in decades.”
Mr Khan’s spokesman added,
“The mayor is working with the Housing Secretary on a package of reforms to boost housebuilding in the capital. Expected to be launched in the coming weeks, the changes will aim to unblock stalled sites and give the mayor stronger levers to approve homes and bring thousands of homes forward more quickly.”
How are ministers planning to tackle London’s housebuilding crisis?
Ministers have long recognized London’s housing crisis, but recent reports pushed them to act quickly.
The Center for Policy Studies revealed only 4,170 homes started in 2024-25, while consultancy Molior predicts construction could drop to 15,000 underway by 2027.
According to a Guardian-obtained memo, Sadiq Khan and Steve Reed are exploring ways to accelerate building, including cutting affordable housing targets.
Other plans also include cutting levies on developers that fund roads and GP services, while increasing subsidies to support more affordable housing projects.
What is Labour’s target for new homes over the next five years?
The Labour Party pledges to build 1.5 million new homes in England over the current five-year Parliament.
Official figures from the Office for Budget Responsibility suggest that existing policies will only deliver around 1 million new homes in England by the target date, falling short of the goal.
Early housing supply numbers from the government’s first year show a net increase of approximately 186,600 homes in England. This is below the annual average of 300,000 needed to hit the 1.5 million goal.