New Government Sets Ambitious Housing Goal for London

The newly elected Labour government has directed London Mayor Sadiq Khan to more than double the number of new homes built in the capital annually. The new target is approximately 80,000 homes per year, a significant increase from the 35,000 homes constructed last year.

Government's Commitment to Housing Crisis

Housing, Communities and Local Government Secretary Angela Rayner announced in Parliament that Mayor Khan was “determined to rise" to this "huge ask.” A spokesperson from City Hall confirmed that the mayor welcomed the new target.

However, the Conservative Party has criticized the new figure as insufficient for London’s needs and lower than their previous target for the capital.

Revising Targets and Planning System Overhaul

Ms. Rayner criticized the previous Conservative government’s “nominal target of almost 100,000 homes” for London as arbitrary and unrealistic. She highlighted the need for practical and achievable goals to address the housing crisis.

Currently, the mayor’s London Plan aims for 52,000 homes annually, yet only about 35,000 were built last year. The new target of 80,000 homes is a substantial increase, but one that Ms. Rayner believes Mayor Khan is prepared to achieve.

Opposition's Concerns

Shadow Housing Secretary Kemi Badenoch questioned the reduction in housing needs for London and the increased pressure on non-urban areas. She argued that cities with existing infrastructure, like London, should build more housing, rather than shifting the burden to suburban and rural areas.

Ms. Badenoch also called for penalties for local leaders, including Mayor Khan, who fail to meet their housing targets.

Housing Crisis in Focus

Housing remains a significant issue in London, as emphasized by voters in both the recent mayoral and general elections. Mayor Khan stated he had exceeded the central government target of starting work on 116,000 affordable homes during his tenure, using £4.8 billion in funding from Whitehall. However, only 65,000 affordable homes were completed under his leadership, compared to over 90,000 during Boris Johnson's time as mayor.

Mayor Khan's Achievements and Challenges

Mayor Khan has prioritized providing more social rented homes, which require greater public subsidies. A City Hall spokesperson noted that despite previous government obstruction, Khan’s mayoralty has seen the most council homes built since the 1970s and the highest overall home completions since the 1930s.

Collaborative Efforts Moving Forward

A review ordered by former Housing Secretary Michael Gove suggested that Mayor Khan's strategies had hindered home-building. Khan dismissed the review as politically motivated, emphasizing that he has delivered more homes than any other region in the country.

Labour aims to foster improvements through collaboration between the government and City Hall. During the general election campaign, both the prime minister and the mayor pledged to complete 40,000 new council homes by the end of the decade, extending two years beyond the next mayoral term. Critics, however, pointed out that many of these homes would complete projects already initiated by Khan and could include repurchased ex-council homes.