London's housing crisis deepens rapidly

London's housing crisis is worsening, with a reported need for 88,000 new homes annually, yet only 3,248 new private homes and 1,239 affordable homes were started in early 2025. The Government's revised planning policy aims to expedite construction, hindered by Brexit, the pandemic, and rising costs, which have increased by 20% since 2020. Despite a budget package for support, experts suggest that aiding developers with land acquisition and stimulating demand are vital for progress. The mismatch between expected land prices and construction costs continues to inflate new-build prices. Current affordability requirements delay development, with housing associations cutting spending on affordable homes. Confidence in the market is crucial for future growth, highlighting the pressing need for affordable housing solutions in London. 

The Observer (11/01/2026)