Sadiq Khan criticised as London housebuilding plummets

Sadiq Khan criticised as London housebuilding plummets

Construction worker laying bricks as London housebuilding faces criticism under Sadiq Khan’s policies
12:01 AM, 4th August 2025, 9 months ago 6

London Mayor Sadiq Khan has come under fire from housing developers for setting impossible housing targets, as the number of new homes in the capital plummets.

According to The Telegraph, Mr Khan’s targets require private housebuilders to make 35% of homes within each development affordable.

However, housebuilders say the targets are “too high and difficult to make a profit.”

The news comes after the National House Building Council (NHBC) revealed that just 904 new homes were registered in London in the second quarter, down 59% from the same period last year.

Requirements have stymied building

The Telegraph claims the NHBC blames the housing slowdown on mounting costs required to fix fire safety defects in high-rise buildings, after measures came into effect a few years ago in response to the Grenfell Tower fire.

However, housebuilders blame Mr Khan’s 35% affordable homes target, saying the “ambitious and inflexible” requirements have stymied building.

A housing developer told the newspaper: “If the Mayor continues to insist on 35%, he’ll get 35% of nothing, so surely it’s better to get a lower percentage of something.”

The Telegraph reveals that developers are now pushing Mr Khan to lower the affordability quota to 25%.

Even Mr Khan’s 35% target is lower than what he originally proposed, when he pledged in his manifesto that half of all new developments would be affordable.

Golden era of council housebuilding

Housing developers are also concerned about a rule that allows Mr Khan to claim the majority of profits from developments where less than 35% of homes are affordable, potentially leaving developers with no profit at all.

Mr Khan’s mission to deliver a “golden era of council housebuilding” appears to be falling short.

Official figures show that work began on just 1,100 new homes in London during the first three months of the year, far below the target of 88,000 homes annually in the capital.


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