Sadiq Khan’s Affordable Housing Target Slashed Amid Record Low Construction Starts in London

The Government has reduced Sir Sadiq Khan’s affordable housing targets after the number of affordable homes started in London last year was revealed to be the second lowest since records began in 2013/14.

In 2024/25, construction began on 3,991 homes subsidized by the mayor, up from 2,358 in 2023/24 but still the second lowest annual figure on record, according to City Hall data. Following the release of these figures, City Hall announced a new agreement with the Ministry of Housing, Communities and Local Government, led by Deputy Prime Minister Angela Rayner, to lower the affordable housing targets for Khan to between 17,800 and 19,000 homes by March 2026.

This is a significant reduction from the previous target of 23,900 to 27,100 homes, which had already been adjusted down from the original goal of 35,000 homes over the five-year period. So far, only 5,188 affordable homes have been started, leaving over 12,000 more homes that need to be started in the current financial year to avoid potentially forfeiting some of the £4.1bn in government housing grants.

A mayoral spokeswoman said the aim is to meet at least the “mid-point” of the revised target, around 18,400 homes. The lower target provides more flexibility for City Hall to allocate funds to projects stalled by rising costs and to incentivize developers to bring forward more housing schemes.

In 2024/25, no affordable homes were started in Bexley or the City of London, and six other boroughs reported single-digit starts. However, 11,636 affordable homes were completed, up from 10,949 the previous year, including 6,681 social rented homes—the highest figure in a decade—and 3,690 council homes, the most since 2018/19.

Robert Colvile, director of the Centre for Policy Studies, criticized Khan’s housing record, accusing him of inflating previous figures by counting future projects as current starts. Meanwhile, Deputy Mayor for Housing Tom Copley cited economic challenges, including high interest rates, increased building costs, and regulatory delays, as major obstacles to housing delivery.

Khan has proposed easing restrictions on building in parts of the Green Belt to increase housing supply, a move that has sparked controversy given the estimated 300,000 approved homes yet to begin construction.

City Hall says London needs 88,000 new homes annually to meet demand and align with the Labour Government’s pledge to build 1.5 million homes nationwide. Currently, London’s target is 52,000 homes per year, a figure that has never been met.

Critics from the Conservative, Liberal Democrat, and CPRE London camps argue that Khan’s efforts are falling short, with calls for more robust measures to address the housing crisis, particularly in social housing, where waiting lists in some areas exceed 50 years.