London's housing crisis has taken a devastating turn, with new data showing the capital is still woefully short of meeting its affordable housing targets – despite emergency measures to reduce requirements. The London Assembly's Housing Monitor report paints a stark picture of a city struggling to build enough homes for its residents, with thousands waiting for social housing and housebuilders failing to meet even revised targets.
Last year, the Government attempted to boost housebuilding in London by slashing affordable housing requirements to 20%. However, this move has not provided relief for those desperate for affordable housing. In fact, the capital's shortfall in meeting these revised targets is now clear – with just 14,335 affordable housing starts recorded over the past three years compared to a target range of 17,800 to 19,000.
The delivery of net affordable homes remains critically low, with only 8,184 added in 2024–25 against an estimated annual requirement of 45,500. This substantial gap underscores the formidable challenges facing housebuilders and policymakers in London. What's more, thousands of affordable homes from previous programmes remain stuck in limbo – with 11,728 still awaiting completion from the current programme and a further 32,081 from the 2016–23 scheme.
While there has been some increase in council home starts this year, rising to 3,865 from just 1,328 in the previous year, overall housing waiting lists across London remain stubbornly high – with more than 340,000 households actively seeking social housing. The situation has sparked concern among policymakers and industry leaders alike.
Lord Bailey of Paddington AM, Chairman of the London Assembly Housing Committee, said affordable housing delivery is still 'falling far short of what London needs'. He added that even with revised targets, they were not met, raising 'important questions about what must change if future programmes are to succeed'. Industry bodies like the National Residential Landlords Association (NRLA) have suggested greater investment in the private rented sector and a more coherent legislative approach could be key in tackling London's persistent housing crisis.