By September 2025, 64% of London’s planned affordable homes had yet to start construction, a new report shows.
A new report from the London Assembly Housing Committee warns that the capital’s affordable housing system is struggling to keep pace with demand.
Published earlier this week, the research highlights a particular shortage of family-sized social rent homes and accessible homes for deaf and disabled people, leaving many families trapped in overcrowded or unsuitable accommodation.
The report also displays slow progress in delivering sites for Gypsy, Roma and Traveller communities, as well as growing pressure on supported housing providers.
Separate research from the National Housing Federation captures the extent of the supported housing crisis in London – 56% of providers warned that schemes could be closed or decommissioned without increased funding.
Some of the key recommendations from the committee’s report include:
- Improving support for councils to acquire existing homes for social rent
- Requiring better monitoring and reporting on homes delivered for Gypsy, Roma and Traveller communities
- Securing sustainable funding for supported housing, including revenue funding as well as capital investment
Zoë Garbett AM, chair of the London Assembly Housing committee, said: ‘London’s housing crisis is hitting families and disabled Londoners hardest, yet the homes they need most are the ones least likely to be built. The report highlights that delivery has slowed sharply since 2023, at the same time as demand for genuinely affordable housing continues to rise.’
‘Evidence to the committee showed that rising construction costs, high land prices, increased borrowing costs and new building safety requirements have all reduced the capacity of councils and housing associations to bring forward new homes,’ Garbett continued. ‘Without changes to how funding is allocated, the report warns that delivery under the next Affordable Homes Programme risks falling further behind.’
As well as affordable homes failing to meet demand in London, the latest research from the British Property Federation and Savills found the construction of new rental homes in London fell by 80% in 2025.
However, the capital’s housing shortage extends beyond affordable homes. Research from the British Property Federation and Savills revealed just 613 built-to-rent homes started construction in 2025, an 80% reduction on the previous year.
Danny Pinder, director at the British Property Federation, said: ‘Build to rent homes are a critical part of the new homes market and can make a key contribution to the government’s ambitious 1.5 million homes target, especially given the model’s incentive to deliver high-quality professionally managed homes at pace.’
He added that impending regulations for the ‘wider rental sector as well as broader tax changes announced at the Budget will continue to accelerate landlord departures from the private rented sector and adversely impact the supply of buy-to-let homes in markets across the country’.
Guy Whittaker, head of UK build to rent research, added: ‘While the fall in starts is stark, particularly in London, there are signs of resilience in the regional picture and in the growing pipeline of consented schemes. The priority now is to convert planning permissions into delivery.’
Image: Scott Webb/UnSplash
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