London (Parliament Politics Magazine) – According to Mayor Sadiq Khan, London is undergoing the toughest housing market since the 2008 global financial crisis.
Mayor Sadiq Khan, in an address to the annual London Conference, expressed high interest rates, a rise in construction materials and the lasting effect of Brexit had left “housebuilding on its knees”.
He expressed the average London house cost was “14 times the typical household income”, while someone purchasing a modest three-bedroom house in Tooting – where he grew up in a council house – “would not see much change from ÂŁ1m. Anyone claiming the solution lies in cutting back on flat whites or Netflix needs to have a serious reality check,” he stated.
How has housebuilding in London decreased under Sadiq Khan’s leadership?
The cross-party London Assembly slammed Mr Khan’s own record on housebuilding, with solely 2,358 homes beginning with City Hall funding in 2023-24 – the lower level since he became mayor eight years ago. Mr Khan was presented £4bn from the previous Tory government and was assigned a target of creating between 23,900 and 27,100 affordable homes by March 2026.
However, by March, just 1,777 homes had been initiated. There were also 581 beginnings “leftover” from the mayor’s previous £4.8bn housing contract making a total of 2,358. He has pledged to build 40,000 new council homes by 2030. By April, a total of 24,031 council homes had been created in London and 8,862 completed.
How does Sadiq Khan plan to address the housing shortage?
Mr Khan stiffened the definition of inexpensive homes when he became mayor. He was due to inform the conference, hosted by the Centre for London thinktank: “When I first became mayor eight years ago, the number of fresh genuinely affordable homes being supported by City Hall had fallen to the lowest levels since records started. The cupboard was left bare.
“Since then, we’ve got London structure again, with more homes constructed in our city than at any time since the 1930s. But we’ve been fighting against the tide of previous administrations.
I want to be candid about the extent of the challenges we now meet, and about how only an answer equal in action to the test will take us from where we are, to where we ought to be.
The chaos left by the last administration has had a catastrophic impact on housebuilding.”