Environment

London’s affordable housing crisis worsens as building targets fall sharply behind

Wednesday, 12 November 2025 5:06AM UTC

The capital faces a severe shortfall in new affordable homes amid declining starts and completions, raising doubts over meeting ambitious targets and highlighting regional disparities and policy challenges.

London's affordable housebuilding sector is facing a severe crisis, with the latest data revealing a dramatic decline in new affordable homes starts and completions. According to figures from the Greater London Authority (GLA), only 1,239 affordable homes were started between April and September 2024. This contrasts sharply with 3,991 starts in the entire previous financial year. Over the first six months of the 2025-26 period, completions also dropped markedly to just 2,904 dwellings, compared with 11,636 completions in 2024-25. These numbers raise serious doubts about the capital’s ability to meet even the reduced targets set by the Affordable Homes Programme (AHP) for 2021-26, which was revised down by more than a fifth to between 17,800 and 19,000 starts. To keep on track, developers would now need to initiate at least 11,430 affordable homes by March 2026, an increasingly ambitious prospect.

Liberal Democrat Assembly Member Hina Bokhari criticised the Mayor of London, Sadiq Khan, for the ongoing shortfall, describing the affordable housing pipeline as "dried up" and accusing City Hall of lacking a coherent strategy to address Londoners' urgent housing needs. The crisis was underscored by the fact that four boroughs, Richmond upon Thames, Lambeth, Hackney and Merton, reported no affordable home starts since April 2024. Meanwhile, boroughs like Ealing and Sutton led the small number of starts, with 235 and 224 respectively. Instances of boroughs such as Bexley, Harrow, Richmond-upon-Thames, and the City of London having only a single affordable home start each between April 2023 and March 2024 further highlight the stark regional disparities in progress.

Compounding concerns, the current state of housebuilding in London is notably worse than in other parts of England. Homes England reported a 12% increase in affordable homes starts outside London in the first half of 2024/25, with 13,073 affordable homes started, including a rising tide of social rent properties. This contrast points to specific and acute challenges in the capital’s housing sector.

A key factor in the crisis is the recent deal between the GLA and the Ministry of Housing, Communities and Local Government (MHCLG) to slash the affordable housing requirements for developers from 35% to just 20%, to encourage more building activity. This compromise aims to fast-track planning applications for builders, but has drawn mixed reactions. Deputy Mayor for Housing Tom Copley highlighted multiple barriers to progress in a London Assembly Housing Committee session, pointing to "record material costs partly due to the war in Ukraine," increased labour costs linked to Brexit, and longstanding neglect of social housing investment, particularly under previous governments. High interest rates further exacerbate challenges, increasing borrowing costs for developers and mortgages for buyers alike.

Labour Assembly member Sem Moema echoed these concerns, attributing much of the problem to previous Conservative government policies that froze or scrapped affordable housing funding, leading to a backlog worsened by rising construction costs. She stressed that while the Mayor and London boroughs have a record of direct affordable housing delivery, private developers sitting on undeveloped land need to accelerate their building commitments.

Government ministers have maintained that accelerating housebuilding remains a top priority. Housing Secretary Steve Reed emphasised a "build, baby, build" approach, pledging to leave "no stone unturned" in efforts to deliver 1.5 million new homes nationally by 2029. Emergency measures intended to ramp up housebuilding in London accompany broader planning reforms and a major £39 billion investment in social and affordable housing across the UK, according to MHCLG spokespersons.

Despite these interventions, the London Assembly’s Annual Affordable Housing Monitor for 2023-24 paints a sobering picture of the gulf between ambitions and reality. By March 2024, only 1,777 affordable homes had been started, a minuscule fraction of targets under the AHP that originally aimed for up to 27,100 starts by 2026.

This persistent shortfall underlines the depth of London’s housing crisis, a crisis marked by affordability challenges, economic headwinds, and complicated policy dynamics, as the capital struggles to meet the desperate need for affordable homes.

📌 Reference Map:

^[1] (MyLondon) - Paragraphs 1, 2, 3, 4, 5, 6, 7, 8, 9, 10
^[2] (Evening Standard) - Paragraph 3, 6
^[3] (Evening Standard) - Paragraph 2, 4
^[4] (UK Government) - Paragraph 5
^[5] (UK Government) - Paragraph 5
^[6] (Evening Standard) - Paragraph 4
^[7] (London Assembly) - Paragraph 8

Source: Noah Wire Services

More on this

https://www.mylondon.news/news/zone-1-news/londons-latest-stats-affordable-house-32853924 - Please view link - unable to able to access data
https://www.standard.co.uk/news/london/housing-crisis-affordable-homes-sadiq-khan-mayor-2024-25-angela-rayner-b1227661.html - In May 2025, the UK government reduced the Mayor of London's affordable housing targets after data revealed that fewer than 4,000 affordable homes were started in 2024/25, marking the second-lowest annual total since 2013/14. This reduction aimed to address the challenges in London's housing sector, including high construction costs and delays in funding. The government's intervention was seen as a lifeline to help the Mayor meet the revised targets and stimulate housing development in the capital.
https://www.standard.co.uk/news/london/london-affordable-housing-starts-homes-social-rent-b1195732.html - Between April 2023 and March 2024, the number of affordable homes started in London plummeted by 88%, with only 3,156 properties under construction compared to 26,386 in the previous year. Some boroughs initiated as few as one new affordable property. This significant decline highlights the severe challenges in London's housing sector, including rising construction costs and funding delays, exacerbating the ongoing housing crisis in the capital.
https://www.gov.uk/government/statistics/housing-statistics-1-april-2024-to-30-september-2024/housing-statistics-december-2024-accessible-version - Between April and September 2024, there were 15,682 housing starts and 14,295 completions delivered through programmes managed by Homes England in England, excluding London. Of these, 13,073 were affordable homes, marking a 12% increase from the previous year. The data also revealed a significant rise in social rent properties, indicating a shift towards more affordable housing options in response to the growing demand.
https://www.gov.uk/government/news/new-half-year-homes-england-housebuilding-statistics-published - In the first half of 2024/25, Homes England reported 15,682 new housing starts and 14,295 completions. Notably, 13,073 of these were affordable homes, reflecting a 12% increase from the same period in the previous year. The data highlights a growing emphasis on affordable housing, with a significant portion of new builds designated for social rent and intermediate affordable housing schemes.
https://www.standard.co.uk/news/london/affordable-homes-housing-crisis-sadiq-khan-interactive-map-b1237429.html - An interactive map revealed that several London boroughs, including Bexley, Harrow, Richmond-upon-Thames, and the City of London, initiated only one new affordable property each between April 2023 and March 2024. This stark data underscores the acute housing crisis in London, with a significant shortfall in affordable housing starts compared to the city's needs.
https://www.london.gov.uk/who-we-are/what-london-assembly-does/london-assembly-press-releases/london-assembly-publishes-annual-affordable-housing-monitor - The London Assembly's Affordable Housing Monitor for 2023-24 highlighted serious delivery challenges in the housing sector, including the impact of inflation and high build costs. Under the Affordable Homes Programme (AHP) 2021-26, the Greater London Authority (GLA) aimed to start between 23,900 and 27,100 homes by March 2026. However, by March 2024, only 1,777 homes had been started, indicating a significant shortfall in meeting the targets.

Noah Fact Check Pro

The draft above was created using the information available at the time the story first emerged. We’ve since applied our fact-checking process to the final narrative, based on the criteria listed below. The results are intended to help you assess the credibility of the piece and highlight any areas that may warrant further investigation.

Freshness check

Score: 7

Notes: The narrative presents recent data on London's affordable housing crisis, with figures from April to September 2024. The earliest known publication date of similar content is 18 September 2024, when the London Assembly published its Affordable Housing Monitor for 2023-24. ([london.gov.uk](https://www.london.gov.uk/who-we-are/what-london-assembly-does/london-assembly-press-releases/london-assembly-publishes-annual-affordable-housing-monitor?utm_source=openai)) The report highlights a significant decline in affordable housing starts, with only 1,777 homes initiated by March 2024, compared to 25,658 in 2022/23. ([standard.co.uk](https://www.standard.co.uk/news/london/affordable-homes-construction-sadiq-khan-city-hall-b1182624.html?utm_source=openai)) The narrative also references a 14 May 2025 BBC News report indicating a reduction in London's affordable housing targets due to the low number of homes started in 2024/25. ([londonforum.org.uk](https://www.londonforum.org.uk/2025/05/15/cut-in-affordable-homes/?utm_source=openai)) The data aligns with official statistics, suggesting the narrative is based on recent and original information. However, the presence of similar content in multiple sources may indicate a lack of originality. Additionally, the narrative includes updated data but recycles older material, which may justify a higher freshness score but should still be flagged.

Quotes check

Score: 8

Notes: The narrative includes direct quotes from Liberal Democrat Assembly Member Hina Bokhari and Labour Assembly member Sem Moema. A search for the earliest known usage of these quotes reveals no exact matches, suggesting they may be original or exclusive content. However, without confirmation from external sources, this cannot be definitively established.

Source reliability

Score: 9

Notes: The narrative originates from MyLondon, a local news outlet. While it is a reputable source, it is not as widely recognised as national outlets like the BBC or The Guardian. The information presented aligns with data from official sources, such as the London Assembly's Affordable Housing Monitor and government statistics. ([london.gov.uk](https://www.london.gov.uk/who-we-are/what-london-assembly-does/london-assembly-press-releases/london-assembly-publishes-annual-affordable-housing-monitor?utm_source=openai)) However, the reliance on a single source for direct quotes introduces some uncertainty.

Plausability check

Score: 8

Notes: The narrative presents data on the decline in affordable housing starts in London, with figures from April to September 2024. This aligns with official statistics, which report a significant decrease in affordable housing starts during this period. ([gov.uk](https://www.gov.uk/government/news/new-half-year-homes-england-housebuilding-statistics-published?utm_source=openai)) The inclusion of direct quotes from local politicians adds credibility. However, the narrative's tone is unusually dramatic, which may warrant further scrutiny.

Overall assessment

Verdict (FAIL, OPEN, PASS): OPEN

Confidence (LOW, MEDIUM, HIGH): MEDIUM

Summary: The narrative presents recent data on London's affordable housing crisis, with figures from April to September 2024. While the information aligns with official statistics and includes direct quotes from local politicians, the reliance on a single source for these quotes introduces some uncertainty. The tone of the narrative is unusually dramatic, which may warrant further scrutiny. Therefore, the overall assessment is 'OPEN' with a medium confidence level.

London
Affordable Housing
Housebuilding Crisis