New government statistics have revealed the number of affordable homes started in London has dropped 88%.
According to government data, 3,156 affordable housing builds began across Greater London between April 2023 and March this year, down from 26,386 starts the previous year.
A Government spokesman commented, that reforms to the planning system, coupled with additional funding, and the requirement for local housing targets to be mandatory, will help improve the situation.
Affordable housing encompasses a broad range of properties, including those rented at no more than 80% of local market rates, as well as shared ownership homes and social rent properties, which are typically set at about 50% of market values.
In London, the number of affordable homes fell by 88% in the last financial year, a sharp decline compared to a 39% decrease seen across the whole of England. The data reveals that construction began on just two affordable homes in Kensington and Chelsea, and three each in Brent, Enfield, and Lambeth.
The London boroughs that saw the highest number of affordable homes started in 2023/24 were Barking and Dagenham (584 starts, down from 1,021 the previous year), Greenwich (406 starts, down from 2,615), and Redbridge (351 starts, down from 575).
A spokeswoman for London Councils, the city’s local government association, noted that while more council-built homes were started in 2022 than in any year since the 1970s, the current market conditions for launching new housing projects are “currently incredibly tough.”
In response to the housing crisis, Chancellor Rachel Reeves recently announced a £500m “top up” to the Conservative government’s £11.5bn England-wide Affordable Homes Programme. Of this additional £500m, London was allocated £100m, bringing the capital’s total share to £4.1bn.
Rob Anderson, research director at the Centre for London think tank, said, “While policy changes such as planning reform to unlock areas on the ‘grey’ belt or incentivise housebuilding on brownfield land are a step in the right direction, it will not be enough to turn the corner on this crisis.”
He continued, “The £500m uplift announced in the recent Budget was welcome, the evidence suggests it will not be enough to deliver the number of social homes needed – estimates range from £4.6bn a year as a minimum, while a comprehensive programme could require up to £15.1bn annually.”