Property

London’s affordable housing crisis deepens as starts plummet under Sadiq Khan

Wednesday, 12 November 2025 5:07AM UTC

Recent data reveals a sharp decline in new affordable housing starts across London, raising concerns over the city’s ability to meet its housing targets amid economic pressures and policy changes.

London’s affordable housing delivery continues to falter sharply under Mayor Sadiq Khan’s administration, with recent data showing a stark decline in new affordable homes being started across the capital. Figures from the Greater London Authority (GLA) reveal that only 1,239 affordable housing starts occurred between April and September 2024, a dramatic drop compared to the 3,991 starts recorded in the entire previous financial year. This slowdown raises serious questions about the viability of meeting even the recently lowered targets for the Affordable Homes Programme (AHP) 2021-2026, which were cut by over a fifth to a range of 17,800 to 19,000 starts.

To reach these revised goals, developers will need to begin construction on at least 11,430 affordable homes by March 2026, a challenging milestone given the current pace. Since the AHP was agreed upon earlier this year, just 6,370 affordable homes have been commenced, highlighting a growing shortfall that critics say the Mayor has yet to adequately address. Hina Bokhari, Liberal Democrat leader on the London Assembly, described the situation as a “cliff fall” in affordable housebuilding, accusing Khan of lacking a clear strategy to resolve the crisis despite repeated promises. Some boroughs, including Richmond upon Thames, Lambeth, Hackney, and Merton, have not seen any affordable home starts since April 2024, underscoring the uneven distribution of developments across the city.

The number of affordable home completions is also dwindling. For the first half of the 2025-26 period, only 2,904 affordable homes were finished, a marked decrease from 11,636 in 2024-25 and 10,949 the year before. This decline is contributing to an acute housing shortage, evidenced by London statistics showing over 65,000 people living in temporary accommodation and more than 320,000 registered on council waiting lists. Industry and political voices attribute the sluggish progress to a mix of economic pressures, planning delays, and historical underinvestment.

Deputy Mayor for Housing Tom Copley has cited factors such as the war in Ukraine driving up material costs, Brexit-related labour shortages, and high interest rates impacting borrowing and mortgages. He also pointed to the legacy of a decade-long neglect in affordable housing investment that has compounded current challenges. Meanwhile, Labour Assembly member Sem Moema places some responsibility on the previous government and private developers holding onto undeveloped land, calling for prioritising funding for direct affordable housing schemes managed by the Mayor and borough councils.

In efforts to incentivise builders, the GLA and central government recently agreed to reduce the affordable housing quota in new developments from 35% to 20%, offering developers faster planning approval in return. However, this move has sparked debate over whether it further weakens efforts to increase affordable supply. Despite these challenges, the Ministry of Housing, Communities and Local Government (MHCLG) stated its commitment to building 1.5 million new homes nationwide by 2029, backed by significant funding and “emergency measures” to accelerate housebuilding in London and beyond.

National-level data from Homes England present a contrasting picture, showing increased starts and completions of affordable homes across England in the latest half-year and annual reports. For example, between April and September 2024, there were 13,073 affordable housing starts in England, a 12% rise compared to the previous year, and for the 2024-25 financial year, 30,087 affordable housing starts were recorded, comprising nearly 80% of total housing starts. These figures highlight a disparity between broader national progress and the capital's ongoing struggles.

As London confronts mounting pressure from its housing crisis, the Mayor's office has yet to provide a detailed public response to the recent figures or clarify how the administration plans to recover lost ground. Without a robust, coordinated approach, the capital risks falling further behind its affordable housing commitments at a time when demand continues to surge.

📌 Reference Map:

^[1] (MyLondon) - Paragraphs 1, 2, 3, 4, 5, 6, 7
^[2] (GLA) - Paragraph 1, 4
^[3] (Homes England half-year report) - Paragraph 8
^[4] (Homes England annual report) - Paragraph 8
^[5] (Evening Standard) - Paragraphs 1, 3
^[6] (Housing Today) - Paragraph 4
^[7] (Evening Standard) - Paragraph 4

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.london.gov.uk/what-we-do/housing-and-land/increasing-housing-supply/affordable-housing-statistics - The Greater London Authority (GLA) provides comprehensive statistics on affordable housing starts and completions in London. These figures are published quarterly and offer insights into the progress of affordable housing delivery across the capital. The data includes detailed breakdowns by borough and tenure type, allowing for an in-depth understanding of housing trends and developments. The GLA's commitment to transparency ensures that stakeholders have access to up-to-date information on housing initiatives and their outcomes, facilitating informed decision-making and policy development.
https://www.gov.uk/government/news/new-half-year-homes-england-housebuilding-statistics-published - Homes England has released its half-year housebuilding statistics, detailing the number of housing starts and completions between 1 April and 30 September 2024. The data reveals a total of 15,682 new housing starts and 14,295 completions during this period. Notably, 13,073 of these starts were for affordable homes, marking a 12% increase compared to the same period in the previous year. The report also provides a breakdown of affordable housing starts by tenure, including Affordable Rent, Intermediate Affordable Housing Schemes, and Affordable Rent, offering valuable insights into the housing market dynamics.
https://www.gov.uk/government/news/new-homes-england-2024-to-2025-housebuilding-statistics-published - The UK government has published the housebuilding statistics for the 2024 to 2025 period, highlighting the number of housing starts and completions delivered by Homes England. The data indicates a total of 38,308 new housing starts and 36,872 completions during this financial year. Of these, 30,087 were affordable housing starts, representing 79% of all starts. The report provides a detailed breakdown of affordable housing starts by tenure, including Social Rent, Intermediate Affordable Housing, and Affordable Rent, offering a comprehensive overview of the housing sector's performance.
https://www.standard.co.uk/news/london/housing-crisis-affordable-homes-sadiq-khan-mayor-2024-25-angela-rayner-b1227661.html - The Standard reports on the government's decision to reduce affordable housing targets for London after the number of homes started in 2024/25 was revealed to be the second lowest on record. Construction began on 3,991 affordable properties, leading to a revision of the target from 23,900 to 27,100 homes to between 17,800 and 19,000 by March 2026. The article highlights the challenges faced in meeting these targets and the implications for London's housing crisis.
https://www.housingtoday.co.uk/news/mayor-of-london-oversees-just-71-completions-under-the-current-ahp-in-first-quarter-of-2024/25/5131039.article - Housing Today reports that the Mayor of London, Sadiq Khan, oversaw the completion of just 71 new homes between April and June 2024, as part of the 2021-26 Affordable Homes Programme. During the same period, there were 150 starts under the programme. This brings the total number of affordable housing completions for the 2024-25 financial year so far to 1,025, with affordable housing starts at 326. The article underscores the challenges in meeting housing targets and the need for accelerated delivery.
https://www.standard.co.uk/news/london/affordable-homes-construction-sadiq-khan-city-hall-b1182624.html - The Standard reports that the number of affordable homes being built in London has fallen to the lowest level during Sadiq Khan's tenure as Mayor. The article highlights the acute need for affordable housing, with 65,280 Londoners living in temporary accommodation and 323,637 on council waiting lists. It also discusses the government's funding and targets for affordable housing, noting that more than 90% of the homes promised to be built by 2026 have yet to be started.

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: 3

Notes: 🕰️ The narrative presents recent data on affordable housing starts and completions in London, with figures from April to September 2024. However, similar reports have been published by reputable sources, such as the London Assembly's Affordable Housing Monitor 2024, released on 18 September 2024, which also highlights challenges in affordable housing delivery. ([london.gov.uk](https://www.london.gov.uk/who-we-are/what-london-assembly-does/london-assembly-work/london-assembly-publications/affordable-housing-monitor-2024?utm_source=openai)) This suggests that the content may be recycled or based on existing reports.

Quotes check

Score: 4

Notes: 🕰️ The narrative includes direct quotes from Hina Bokhari, Liberal Democrat leader on the London Assembly, and Deputy Mayor for Housing Tom Copley. These quotes appear to be original, as no exact matches were found in earlier publications. However, the lack of earlier appearances raises questions about the exclusivity of the content.

Source reliability

Score: 5

Notes: ⚠️ The narrative originates from MyLondon, a local news outlet. While it provides detailed information, the lack of corroboration from other reputable sources raises concerns about the reliability of the information presented.

Plausability check

Score: 6

Notes: ⚠️ The claims about the decline in affordable housing starts and completions align with known challenges in London's housing sector. However, the absence of supporting details from other reputable outlets and the lack of corroboration from official sources make the narrative's claims less credible.

Overall assessment

Verdict (FAIL, OPEN, PASS): FAIL

Confidence (LOW, MEDIUM, HIGH): MEDIUM

Summary: ⚠️ The narrative presents recent data on London's affordable housing delivery, but the lack of corroboration from reputable sources, potential recycling of existing content, and absence of supporting details raise significant concerns about its credibility.

London housing
Affordable homes
Sadiq Khan