London housing crisis deepens as affordable homes target missed

Despite cutting affordable housing targets in the capital, London is still falling far short of its housing delivery goals, according to new findings.

The London Assembly’s annual Housing Monitor report reveals housing targets have been missed and housing waiting lists continue to soar.

Last year, the government announced new emergency measures to tackle London’s housebuilding shortfall by cutting affordable housing requirements to 20%.

Targets still not met

Lord Bailey of Paddington AM, chairman of the London Assembly Housing Committee, said: “Affordable housing delivery is still falling far short of what London needs.

“Even after targets were revised downwards, they were not met.

“That reflects the severe challenges facing housebuilding in London, but it also raises important questions about what must change if future programmes are to succeed.”

According to the data, during the 2021–26 period, the capital recorded 14,335 affordable housing starts against a revised target of 17,800 to 19,000.

Delivery also remains far below the level needed to meet demand, with 8,184 net affordable homes added in 2024–25 compared with an estimated annual requirement of 45,500 homes.

At the same time, thousands of affordable homes are still awaiting completion, with 11,728 homes remaining in the pipeline from the 2021–26 programme and a further 32,081 from the 2016–23 programme.

Despite council home starts increasing in 2025–26 following a weak previous year (3,865 starts, up from 1,328 in 2024–25), housing waiting lists remain high, with more than 340,000 households across London seeking social housing.

PRS key to solving housing crisis

As previously reported by Property118, an industry body has claimed the private rented sector is key to solving London’s housing crisis.

Speaking at the London Housing Conference, chief executive of the National Residential Landlords Association (NRLA), Ben Beadle, claimed that investment in the private rented sector and ending piecemeal legislation are key to tackling the capital’s housing crisis.