London is building less houses for the first time in years, but why?

Houses being built in London have decreased, falling by more than a fifth, which puts the city’s building rate behind the Home Counties’ for the first time in five years.

In London, around 16,800 new homes were started in the year to March 2017, which is a sharp difference and reduction from the 23,000 homes build in the year before.

The levels of housebuilding are now far lower than in 2013 according to the Housing and Finance Institute. However, across England on a whole, the number of houses grew by 13 per cent with the number rising from 143,000 to 163,000.

Speaking to City A.M, Natalie Elphicke, chief executive of the Housing and Finance Institute, said: “The Home Counties areas have maintained the overall proportion of homes against the overall national increase in numbers, which is impressive.

“But relying on the Home Counties isn’t good enough. The London mayor has set out a clear ambition for a step change in housing. But London needs national support. It isn’t right for government just to leave London to solve its own housing crisis.”

Yet the mayor, Sadiq Khan, has stressed that solving this crisis on London’s housing situation will take time.

Last year, he secured £3.15bn from central government for the construction of 90,000 affordable homes. It is said that funding has started being allocated this summer.

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