London starts far short of 88k target

London is starting far fewer homes than the 88,000 a year the government says the capital now needs. The shortfall has become a test of Labour’s 1.5 million-home pledge. (europesays.com) (gov.uk) The Guardian reported on April 26 that only 3,248 new private homes began construction in London in the first nine months of 2025. The wider starts figure cited in circulation this weekend was 5,547 against the annual 88,000 benchmark. (europesays.com) That 88,000 figure is not City Hall’s old target. It comes from the government’s updated housing requirements, which raised London’s expected contribution as part of a national plan for 1.5 million homes over this Parliament. (gov.uk) (london.gov.uk) London was already building well below that level before the new target arrived. The London Assembly says 32,160 homes were built in 2023-24, and annual completions have not exceeded 52,200 in the past 20 years. (london.gov.uk) The slowdown is colliding with a deeper housing squeeze in the capital. City Hall says more than 90,000 children are homeless and living in temporary accommodation in London, while the Assembly has pointed to more than 336,000 people on council waiting lists for social housing. (london.gov.uk 1) (london.gov.uk 2) London officials and industry figures are not blaming a single bottleneck. City Hall says high interest rates, rising construction costs and reduced national funding have hit build-out, while the Assembly says more than 300,000 homes have planning permission but have not yet been built. (london.gov.uk 1) (london.gov.uk 2) The government’s case is that planning reform can raise output. Its December 2024 overhaul made higher housing targets mandatory and said councils would be pushed to update plans faster, with extra funding for planning officers. (gov.uk) But even official commentary has suggested the gap is large. The Office for Budget Responsibility estimate cited after the Spring Statement was that planning reforms would get delivery to about 1.3 million homes, below the 1.5 million target, with further measures meant to close the difference. (localpartnerships.gov.uk) Sadiq Khan has argued the next London Plan will have to go beyond a brownfield-first approach if the capital is to get closer to the new requirement. The London Assembly is separately examining whether more mid-rise development should play a larger role. (london.gov.uk 1) (london.gov.uk 2) The numbers now circulating do not prove London will finish the year at 5,547 starts. They do show how far current building activity is from an 88,000-a-year target that was always going to require a sharp break from recent history. (ons.gov.uk) (london.gov.uk)