A significant majority of Londoners support building homes on grey belt land, according to new research commissioned by London Councils and conducted by Ipsos.

The annual Survey of Londoners found that 56% favor developing housing on the grey belt—previously built-on sections of greenbelt land, such as old petrol stations and car parks—while only 18% oppose it.

The survey highlights the increasing pressure of London’s housing crisis, with 74% of respondents supporting new developments in their area—provided the homes are affordable to locals.

London’s housing crunch: rising costs and scarce availability

The cost of living and housing affordability remain top concerns for Londoners, with respondents reporting that, on average, they spend 42% of their personal income on rent or mortgage payments. Renters, in particular, are feeling the strain, as 70% say their housing costs have risen over the past year.

Among those in rented accommodation, 80% believe there is a severe shortage of affordable homes in the capital. Additionally, only 24% of renters feel there are enough suitable properties available for them. This lack of affordability is driving many to consider leaving—one in four say they may need to move out of London within the next year to find a home they can afford.

Record homelessness and calls for action

London Councils has repeatedly sounded the alarm over rising homelessness, describing it as an “emergency.” Over 183,000 Londoners—more than one in 50—are currently homeless and living in temporary accommodation. Boroughs collectively spend £4 million per day on housing homeless residents, while social housing waiting lists have swelled to 320,000 households.

Cllr Claire Holland, Chair of London Councils, emphasized the urgency of the situation:

“Londoners are acutely aware of the massive housing pressures in the capital and the desperate need to build more affordable homes.

“London faces the most severe homelessness emergency in the country. Driven by the worsening shortage of affordable housing, far too many Londoners are struggling with their housing costs and at risk of becoming homeless.

“Boroughs are determined to do all we can to support our residents and to end this crisis. We want to work closely with the government in ensuring low-income households are helped to meet their housing costs and avoid homelessness. Alongside this we are resolutely pro-housing growth, and keen to work with ministers in ramping up bricks and mortar delivery. Our communities are crying out for new affordable homes – we must ensure 2025 becomes the year of turbocharged housebuilding in London.”

Policy priorities to address the crisis

To tackle the housing crisis, London Councils is advocating for key policy changes, including:

Annual updates to Local Housing Allowance (LHA) rates to reflect market rents, ensuring adequate support for low-income renters. Currently, only 5% of private rental listings in London are affordable under LHA rates.

A new funding settlement for social housing, addressing a £700 million shortfall that threatens boroughs’ ability to maintain existing stock and build new social housing.

Increased infrastructure investment to unlock new housing supply, particularly in transport projects that enable residential development.

Public sentiment: support for local control and housing growth

The Survey of Londoners also reveals shifting public attitudes:

- Trust in local decision-making: 70% support giving councils more control over tax and spending if it means greater community influence.

- Housing governance: Londoners are most likely to trust their local community (63%) to make decisions about new housing developments, followed by their local council (57%) and the Mayor of London (50%).

- Pessimism about homeownership: Almost half (48%) of respondents do not believe house prices in London will fall over the next two years, an 11-percentage-point increase in skepticism since 2023.

- Despite rising concerns, the survey also found a slight increase in satisfaction with local areas, with 65% of Londoners rating their neighborhood positively—up three percentage points from the previous year.

As pressure mounts, both policymakers and residents recognize the need for urgent action to address London’s housing crisis. Whether 2025 will indeed become the “year of turbocharged housebuilding” remains to be seen.