The dismal state of affordable housebuilding in London is a clear indictment of the current administration’s failure to deliver for ordinary Londoners. Data from the Greater London Authority (GLA) reveals that in the six months from April to September, developers started just 1,239 affordable homes, barely a quarter of the 3,991 begun in the entire previous year. Since the controversial approval of the Affordable Homes Programme (AHP) for 2021-2026 in 2023, only 6,370 affordable homes have been initiated, far from the 17,800 to 19,000 starts needed before March 2026. To meet targets, developers would need to accelerate their efforts by over 11,400 homes in the next 18 months, a nearly impossible feat under current policies.
This crisis has been exacerbated by the Mayor’s lack of effective leadership. Critics have condemned Sadiq Khan for presiding over a “housing crisis on steroids,” with the pipeline for new affordable homes drying up under his watch. Several boroughs, including Richmond upon Thames, Lambeth, Hackney, and Merton, have recorded no affordable housing starts since April, while even relatively better-performing areas like Ealing and Sutton fall drastically short of demand. Such stagnation underscores the Mayor’s inability, or unwillingness, to address London’s fundamental housing shortages.
The decline in completed affordable homes is equally stark. Just 2,904 dwellings were finished in the first half of this financial year, an alarming drop from over 11,636 completions in 2024-25. Alarmingly, this downturn coincides with a government-funded deal that slashed the affordable housing requirement from 35 to just 20 percent, an attack on the very goal of increasing affordability, dressed up as an incentive for builders to “accelerate” development. But in reality, it is yet another handout to big developers while ordinary Londoners continue to be priced out of their own city.
Delays and policy-induced setbacks have played a significant role. Deputy Mayor Tom Copley blames regulatory hurdles, delays from the Building Safety Regulator, and the late approval of the AHP for the slowdown. Economic headwinds, rising material and labour costs driven by Brexit, global instability, and the war in Ukraine, along with sky-high borrowing costs, only make matters worse. Yet, these excuses mask the larger failure of a government that has consistently neglected London’s housing needs and prioritized short-term developer profits over affordable homes.
Opposition voices, including those from the London Assembly, are right to point out that private developers, sitting on vast land banks, have yet to deliver the homes London desperately needs. Instead of relying on the private sector to come through in a city where market forces have failed, there should be a decisive shift towards empowering local authorities and bold, publicly-led schemes. The current approach of grants and market incentives has failed, and taxpayers’ money should be directed into direct, accountable projects that prioritize genuine affordability.
The reality is sobering: in 2023-24, only 2,358 affordable homes were started with city funding, the lowest figure since Sadiq Khan took office eight years ago. This is a stark contrast to the estimated 43,000 affordable homes London needs annually, illustrating the scale of failure. The public deserves a government willing to enact meaningful reforms, cut through red tape, and take responsibility for tackling this chronic crisis.
While the government claims to be committed to a national target of 1.5 million new homes, including social and affordable options, the tangible impact remains to be seen. Investment plans totaling £39 billion aim to speed up construction, but without strong leadership and a clear plan to cut through bureaucratic delays and market distortions, these promises are hollow.
In the end, London’s housing emergency is a disaster of the Mayor’s making. His administration’s inability to deliver affordable homes is pushing the city further into crisis, with no sign of change on the horizon. It’s high time for a new approach, one rooted in principles of accountability, public ownership, and a genuine commitment to restoring fairness in housing. The political establishment’s current failures have left Londoners high and dry, and only a determined opposition will stand up for those abandoned by this broken system.
Source: Noah Wire Services