Sadiq Khan Fails to Meet Revised Affordable Housing Target in London, Despite Significant Cuts

The Mayor of London is facing criticism for failing to meet the revised affordable housing targets set by the Government, which fall short by thousands of homes. Sir Sadiq Khan was allocated £4 billion for the Affordable Homes Programme (AHP) covering the period from 2021 to 2026. Initially, he aimed to commence between 23,900 and 27,200 affordable homes, but this target was reduced by 22 per cent last year to a range of 17,800 to 19,000 due to reports indicating slow progress. However, recent findings reveal that only 14,335 affordable housing starts have been achieved under the current AHP, significantly below the adjusted expectations.

Challenges in Affordable Housing Delivery

Since the March deadline, Homes England has announced a potential extension of up to six months for the programme, assessed on a case-by-case basis. The report from the London Assembly Housing Committee also highlighted that 27 per cent of homes initiated under the previous 2016-2023 AHP remain incomplete, which equates to around 32,081 homes. In the years 2024-25, the net addition to London’s affordable housing stock was just 8,184, sharply contrasting with the Greater London Authority’s estimations that the city requires a net of 45,500 affordable homes annually between 2026 and 2036 to adequately address housing needs.

Assembly Member Lord Bailey, Chairman of the Housing Committee, expressed concern over the ongoing shortfall, stating, “Affordable housing delivery is still falling far short of what London needs. Even after targets were revised downwards, they were not met. This reflects the severe challenges facing housebuilding in London, but it also raises important questions about what must change if future programmes are to succeed.”

Criticism of Current Housing Models

Benali Hamdache, a member of the Green Party in the London Assembly, commented on the situation, stating that the current model for delivering affordable housing appears fundamentally flawed. He pointed out that the expectation that an increase in luxury flats would lead to the construction of new council housing has proven incorrect. Since 2015, only 10 per cent of completed affordable homes have been designated for social rent, which is the category most urgently needed. He further noted that shared ownership schemes often do not provide true affordability, despite being the predominant form of “affordable” housing available.

Hamache urged the Mayor to collaborate with the incoming Prime Minister Andy Burnham to address the ongoing housing crisis, advocating for a new approach that prioritises housing for people over profit.

Signs of Improvement Amidst Adversity

Despite the ongoing challenges, there are some positive developments that City Hall officials are keen to highlight. They assert that enhancements to the Building Safety Regulator (BSR) and a new emergency housebuilding initiative, agreed upon with ministers, are set to address the housing crisis in London. Last year, 39 per cent of all new build homes were affordable, a notable increase from just 19 per cent in 2016-17. Furthermore, 86 per cent of all homes commenced were affordable, a significant rise from the 46 per cent recorded eight years earlier.

The borough of Tower Hamlets has emerged as a leader in GLA-funded affordable housing starts since 2023, with 1,484 of the 15,715 homes completed in the East London area over the past three years. Conversely, four boroughs—Chelsea, Harrow, Bexley, and Richmond upon Thames—reported fewer than 60 affordable housing starts each.

Social Housing Waiting Lists Highlight Growing Demand

The report also revealed that there are currently 341,421 households on social housing waiting lists across London, accounting for a quarter of the national total. Newham tops the list with 41,223 households waiting for social housing, followed by Brent, Lambeth, and Tower Hamlets. In response to the findings, a spokesperson for the Mayor of London reiterated that addressing the housing crisis remains a top priority. They noted that the Mayor has been vocal about the compounded effects of Brexit, the pandemic, high interest rates, and global economic instability, which have created the most challenging environment for housebuilding since the global financial crisis.

The Mayor is committed to supporting housing associations and councils through a historic £11.7 billion investment in the London Social and Affordable Homes Programme over the next decade. Additionally, a new City Hall Developer Investment Fund will provide £322 million in grants and £1.5 billion in ultra-low-interest loans for housing associations, aimed at unblocking stalled projects and accelerating the construction of affordable and social housing across the capital. Enhanced powers for City Hall to review and call in housing schemes, alongside stronger capabilities to implement Mayoral Development Orders, are also expected to facilitate the delivery of 6,000 new rent-controlled homes for key workers.

These new measures are anticipated to significantly boost housebuilding in London, facilitating the rapid delivery of thousands of additional homes as efforts continue to create a better living environment for all residents.