Khan's housing pledge in crisis as new starts fall below 350 for quarter

Telegraph

19 hours ago

Sir Sadiq Khan's plans for thousands of affordable homes in London have been plunged into crisis after figures showed just a few hundred new properties got off the ground last quarter.
On Tuesday, new figures from the Greater London Authority showed 347 affordable homes had started construction between April and June this year – significantly below the number that the Mayor of London needs to meet his ambitious housebuilding targets.
Sir Sadiq is aiming to build up to 19,000 affordable homes by March 2026. He is facing a significant shortfall if the pace of new building starts recorded in April to June continues.
Lord Bailey, the housing spokesman for the City Hall Conservatives, said the Mayor was 'clearly failing'.
'London's housing crisis becomes more severe with every passing day, putting an increasing burden on Londoners and London councils with rising rents and mortgages,' he said.
'Struggling Londoners need the Government to succeed in tackling this issue but Khan is clearly failing, and we all pay the price. How will he ever meet his own targets, let alone the targets his own Government has set him? He's the weakest link in this chain.'
Of the 19,000 affordable homes targeted, work has begun on just 5,500 – leaving the scheme 13,500 homes short.
The latest figures are a further embarrassment after Angela Rayner's Ministry of Housing recently cut the target by 22pc to between 17,800 and 19,000 homes.
Around 12,300 homes need to be started within the next nine months if he is to hit his objective.
The Mayor of London's office has blamed the previous Conservative government's 'horrendous legacy' for making it 'harder and more expensive' to build homes.
A spokesman for the Mayor said: 'Sadiq has made tackling this crisis a priority since he took office, and despite these challenges the highest number of affordable homes for social rent in a decade were completed last year.
'The Mayor is taking the hard decisions to improve housing supply of all tenures. He is actively exploring releasing parts of London's green belt for development and is working closely with the Government to resolve issues like delays from the Building Safety Regulator.'
The figures come amid wider concerns that Britain's housing market is stalling, driven by fears that Rachel Reeves will raise taxes this autumn.
Matt Pullen, the chief executive of building materials supplier Marshalls, said speculation around the Budget is creating uncertainty in the industry and 'weighing on individuals ... and business confidence'.
He pointed to growing reluctance from homeowners to spend their savings on renovation projects, as well as a lack of confidence among first-time buyers and employers.
Housebuilder Bellway also called for more focus on stimulating demand with greater support for first-time buyers.
It has reported a 14pc uplift in home completions during the year ending July 2025.
However, it flagged softer trading conditions as a result of 'demand-side constraints' for first-time buyers and 'delays to planning decisions' while local authorities adapt to the Government's planning reforms.
The Prime Minister has vowed that the autumn Budget will focus on improving living standards.
However, Sir Keir Starmer and Rachel Reeves, the Chancellor, face warnings that they could be forced to increase taxes by as much as £50bn to plug a gap in the public coffers.
A government spokesman said: 'We are delivering the biggest boost to social and affordable housing in a generation, and our landmark planning reforms will help to drive UK housebuilding to its highest level in over 40 years while growing the economy by £6.8bn.
'Thanks to measures taken at the Budget, there will also be an additional 130,000 transactions over the next five years by first-time buyers and others buying a primary residence.'