A fantasy figure, why include fanatistic undeliverable numbers in the revised LOndon Plan without any clear idea where the housing will be built inside or outside London’s built up area. Might as well throw a dart at one of many numbers on the wall for all the use the London Plan would be – what is needed is a real strategic plan not confined to London’s built up area looking at serious deliverable options for housing to fully meet London’s needs.
City Hall is expected to hike London’s annual housebuilding target this year amid warnings private sector completions in the capital are set to tumble.
Sadiq Khan’s team has started work on a new London Housing Strategy which will include a fresh housing needs assessment and will lay out the mayor’s plan to meet the city’s housing shortage.
The document, which is due for publication later this year, is expected to raise London’s existing 20-year annual housebuilding target of 49,000 set by a 2013 housing market assessment during Boris Johnson’s mayoralty.
Sources told Inside Housing that past and projected failure to meet this ambition has caused increasing need for homes, meaning the target must be increased.
Data released by Savills this week revealed that completions in London will hit record heights of 46,500 in 2017, but this is set to plummet by 2021 as private starts drop to just 18,000 a year.
It said this was due to falling sales rates, caused by an oversupply of properties at the top end of the market.
According to the Department for Communities and Local Government, an average of 20,030 homes have been built annually in London over the past decade.
James Murray, deputy mayor for housing and residential development, said: “These figures show the scale of the challenge we inherited from the previous administration, and in particular the importance of building more genuinely affordable homes and purpose-built homes for private rent.
“The mayor… will set out further plans for meeting London’s housing needs in his draft London Plan and London Housing Strategy later this year.
“It is essential that London has the right tools to build more homes, and so we are continuing discussions with government about devolving the powers and resources we need.”
It is not yet clear what the updated target will be, but Savills puts new housing demand in the capital at 64,000 a year. Mr Khan has previously suggested figures as varied as 50,000 and 80,000.
The existing London Plan identifies land capacity for around 42,000 homes a year, meaning any housebuilding target increase will likely require higher-density development.