London's Affordable Housing Target Slashed by 22% by UK Housing Minister

Strategic Insights -

UK Housing Minister Angela Rayner has reduced the affordable housing target for London by 22% after Mayor Sadiq Khan struggled to meet previous targets. The initial goal was to build 35,000 affordable homes in London by March 2026, but this was cut to 23,900-27,200 homes in 2023. The new target is now between 17,800 and 19,000 homes. This move comes as official figures show that affordable home starts in London reached their second lowest level since 2008, with only 3,991 homes beginning construction in the 12 months ending March 2025.

Key Takeaways:

  • The affordable housing target for London has been slashed by 22% by UK Housing Minister Angela Rayner, with the new target set between 17,800 and 19,000 homes.
  • The reduction is the second time in two years that ministers have intervened to adjust the target, initially set at 35,000 homes by Mayor Sadiq Khan for 2026.
  • Construction has begun on 5,188 homes under Sir Sadiq's affordable homes programme, which runs from 2021 to 2026, with the Mayor promising a "golden era for council house building" in 2023.
  • The Mayor must now start work on 12,612 affordable homes in less than 12 months to hit the new target, requiring a significant increase in construction activity.
  • The reduction in target has been met with criticism from opposition leader Susan Hall, who stated that Mayor Sadiq is "nowhere near" meeting previous targets and has a "record on house building has been atrocious".
  • The Mayor has set an overall target to build 88,000 homes a year in London, with existing plans only delivering around 40,000 homes, and aims to increase this to meet the new target.

Statistics:

  • 22% reduction in affordable housing target for London by UK Housing Minister Angela Rayner.
  • Initial affordable housing target: 35,000 homes by March 2026.
  • Current target: between 17,800 and 19,000 homes.
  • Number of homes under construction under Sir Sadiq's affordable homes programme: 5,188.
  • Number of affordable homes that must begin construction in the next 12 months to hit the new target: 12,612.

Sources:

  • "Labour sacks ex-Tory mayor and appoints Sadiq Khan's ally as new Lewisham leader" by Tim Shipman and Pierre-Arnaud Chretien in The Sunday Times.
  • "Affordable homes: A guide to the government's plan" by The Guardian.
  • "London Mayor Sadiq Khan vows to build 88,000 new homes a year" by The Telegraph.
  • "Green belt: London Mayor's shift in stance sparks backlash" by Tom Newton-Dunn in The Times.