London’s largest landlords see 66% drop in housing starts in two years

The group, which represents the capital’s largest housing associations, said the report reinforces the scale of the challenge now facing the Labour government and the need for “urgent, sustained action” to meet the UK’s ambition of delivering 1.5 million new homes.

It said the decline is part of a wider “pattern of stagnation” in housing delivery, following years of “underinvestment, policy instability and inflationary pressures”.  

The G15 said that it welcomes the government’s commitment to tackling the housing crisis, but that the report’s findings “make clear that further reform is essential if the potential of housing associations as delivery partners is to be realised”. 

The group is calling for three measures to be adopted as part of the upcoming Spending Review, including a 10-year rent settlement “to provide long-term certainty for planning and investment”.

The G15 is also calling for a rent convergence mechanism and full access to the Building Safety Fund for housing associations. 

Fiona Fletcher-Smith, chair of the G15 and chief executive of L&Q, said: “This development report lays bare the stark reality of where we are: fewer affordable homes are being built, just as demand reaches record highs. 

“Years of short-term policy, funding uncertainty and complex regulation have taken their toll on delivery. 

“We are encouraged by the early signs from the new government – they’re listening and engaging with the scale of the challenge. But real progress demands long-term reform and the tools to plan and build at scale.”

She said “nowhere is the need more urgent” than in London.

“Every affordable home built here generates over £27,000 in social and economic value each year and helps keep the essential workers our capital relies on living in the city,” Ms Fletcher-Smith said. “The G15 stands ready to help deliver the 1.5 million homes this country needs. We urge ministers to work with us to make that ambition a reality.” 

A Ministry of Housing, Communities and Local Government spokesperson said: “We are determined to tackle the acute and entrenched housing crisis and build 1.5 million new homes as part of our Plan for Change – including the biggest boost to social and affordable housing in a generation – including in the capital.

“Just last week the mayor put forward a bold proposal to tackle the capital’s housing crisis. We are also investing in more affordable homes with an £800m top-up to the Affordable Homes Programme and a £2bn down payment on further funding, alongside work to unlock housing in the capital and overhaul the broken planning system.”