London needs an extra 809,000 homes by 2021, according to the body flying the flag for the capital’s 33 local authorities
Think tank and lobby group London Councils has warned that the capital’s ‘future prosperity is in doubt unless steps are taken to build nearly a million homes’.
More than 525,000 new homes will need to be built in London over the next eight years to keep up with current demand - yet current projections suggestion just 250,000 will be constructed by 2021.
In addition an estimated 283,000 homes are required to meet the current backlog of housing need.
Current housing supply levels suggest that there will be a deficit of 559,000 homes by 2021.
Steve Bullock, London Councils’ executive member for housing, said: ‘The news that London needs almost a million homes by 2021 is a scandal - the last time we faced such an acute housing supply crisis was after the Second World War. This is a long time coming and the capital’s future prosperity is on the line.
‘Rising housing costs are not only a problem for those struggling to rent but for any Londoner wishing to buy their own home. If the housing crisis is not solved, costs for the London economy will continue to spiral. More working families will struggle to rent and to buy, more people could be forced out of the capital and homelessness is very likely to go up.’
London Councils suggests that housing would be boosted by lifting the borrowing cap which prevents local councils from investing in housing, increasing investment in the rental sector, supporting small builders, and promoting sustainable development near to the tube network.
The report, released today (16 September) suggests 134,000 new homes could be built if these suggested measures are taken forward.
Last week the Town and County Planning Association (TCPA) suggested the scale of housing demand significantly outstrips supply. According to their report around 245,000 new homes are needed every year across the UK, with around 60 per cent of this demand in the southern regions.