- The government has today published a new package of support for housebuilding in London
- The average private renter in London can expect to spend between 40% and 50% of their income on rent. Homes England has estimated that increasing London’s housing stock by 5% would decrease housing costs by 10% and raise economic productivity by 3.1%
- Despite this, London has seen a dramatic fall in housebuilding in the past decade
- Only 4,170 homes were started in the capital in 2024-25, less than 5% of the official 88,000 home target
- Analysis by the Centre for Policy Studies of data from the consultancy Molior, covering private developments of 20 or more houses, shows that four fifths of homes finished last year received planning permission under Boris Johnson’s London Plans, even if they were signed off during Sir Sadiq Khan’s mayoralty. Just a fifth were built under the plan Khan put in place in 2021
- Figures previously published by the CPS found that London has just 427 homes for every 1,000 residents. If London were to match the average ratio in comparable European countries, it has an implied shortage of 1.1 million homes
Commenting on the announcement, CPS Head of Housing and Infrastructure Ben Hopkinson said:
‘The government’s support for housebuilding in London is welcome, and the new policy paper contains some encouraging elements.
‘The removal of costly regulations like those requiring dual aspect and the changes to high affordability requirements, as the CPS has repeatedly called for, are especially good news.
‘However, these measures, along with those on second staircases and the recent introduction of the Building Safety Regulator, have been responsible for housebuilding in London grinding to an almost complete halt in recent years. Only 4,170 homes started construction in London the last financial year and the Mayor of London’s own policies have contributed to the freefall.
‘Both Steve Reed and Sadiq Khan should see the measures announced today as first steps, not the end of the road, if we are going to make building in the capital viable again.’
NOTES TO EDITORS
- Ben Hopkinson is the Head of Housing and Infrastructure at the Centre for Policy Studies
- For further comment and media requests, please contact Emma Revell on 07931 698246 or [email protected]
- Previous CPS research includes ‘The City That Doesn’t Build’ and ‘How Many Homes Does the UK Need?’
- The Centre for Policy Studies is one of the oldest and most influential think tanks in Westminster. With a focus on taxation, economic growth, housing, immigration, and energy abundance, its goal is to develop policies that widen enterprise, ownership and opportunity.
Date Added: Thursday 23rd October 2025
