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London has seen an 88% drop in affordable-housing starts, with just 3,156 homes begun between April-2023 and March-2024, compared to 26,386 the previous year. Harrow, Bexley, Richmond-upon-Thames, and the City of London recorded only one new affordable-home each, while boroughs like Kensington and Chelsea saw as few as two starts. Barking and Dagenham led with 584 starts, though still significantly down from 1,021. The decline contrasts with a 39% fall across England. London Councils cite tough market conditions despite 287,000 approved homes, including 70,000 affordable units, remaining unbuilt. Government reforms aim to address this crisis.
London has experienced a sharp 88% decline in the number of affordable housing starts over the past financial year, according to newly released government statistics. Between April 2023 and March 2024, work began on just 3,156 affordable homes across Greater London, a significant drop from 26,386 in the previous 12 months. The decline highlights a severe challenge for addressing housing needs in the capital. Advertisement
Several boroughs recorded alarmingly low figures. Harrow, Bexley, Richmond-upon-Thames, and the City of London each saw only one new affordable home started. Similarly, Kensington and Chelsea registered just two, while Brent, Enfield, and Lambeth each recorded three starts. Even the boroughs with the highest activity, such as Barking and Dagenham (584 starts), Greenwich (406), and Redbridge (351), experienced steep declines compared to their performance in the previous year. Barking and Dagenham, for instance, saw a reduction from 1,021 starts, while Greenwich's numbers fell from 2,615, and Redbridge dropped from 575.
The reduction in London's affordable housing starts far exceeds the national trend, which saw a 39% decrease across England during the same period. Affordable housing is defined as a category that includes homes rented at up to 80% of local market rates, shared ownership properties, and social rent homes offered at approximately 50% of market levels.
A spokeswoman for London Councils, the local government association representing the capital, acknowledged the dire situation. Despite London recording the highest number of council-built homes started in 2022 since the 1970s, she described the current market conditions for initiating new projects as "incredibly tough." Contributing factors include rising construction costs, economic uncertainty, and challenges in securing funding for housing developments.
Adding to the problem is the backlog of unbuilt homes. London has 287,000 approved housing units, including 70,000 affordable homes, that remain stalled despite having planning permission. This stagnation has exacerbated the housing crisis and hindered efforts to meet the city's growing demand for affordable accommodation.
To address the situation, the government has proposed reforms, including changes to the planning system, increased funding for housing initiatives, and the introduction of mandatory local housing targets. These measures aim to streamline development processes and ensure that more affordable homes are delivered in a timely manner.
The steep decline in affordable housing starts underscores the urgent need for effective interventions to revive the sector and address the housing shortfall in London, which remains one of the most expensive cities in the world for housing.
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