London's affordable homes crisis deepens

London is facing its most challenging housebuilding environment since the 2008 financial crisis, according to Mayor Sadiq Khan. In a recent speech, he highlighted that only 2,358 affordable homes were started with City Hall funding in 2023-24, the lowest since he took office. Khan attributed this decline to high mortgage interest rates, rising construction costs, and the lingering effects of Brexit. The Mayor said: “The truth is, we're in the midst of the most difficult period for housebuilding in the capital since the global financial crash of 2008.” Despite a target of starting between 23,900 and 27,100 affordable homes by March 2026, only 1,777 homes had been initiated by March. The London Assembly's housing monitor indicates that nearly 43,000 affordable homes are needed annually until 2041 to meet demand. Fiona Fletcher-Smith, chair of the G15 group, emphasised the urgent need for innovative funding solutions to address the crisis. 

The Standard (11/11/2024)