Mayor of London Sadiq Khan has failed to meet even the reduced affordable housing target set by the government, delivering only 14,335 affordable housing starts under the 2021-2026 Affordable Homes Programme (AHP), according to a new report from the London Assembly Housing Committee.
Revised target still unmet
The original target of starting between 23,900 and 27,200 affordable homes was cut by 22 per cent last year to a range of 17,800 to 19,000 after interim reports showed slow progress. However, the final figure of 14,335 falls well short of the lowered goal. The deadline for the programme passed in March, but Homes England later announced a six-month extension on a case-by-case basis.
The report also reveals that 27 per cent of homes started under the previous 2016-2023 AHP remain unfinished, equivalent to 32,081 homes. In 2024-25, the net addition to London's affordable housing stock was just 8,184, far below the estimated need of 45,500 affordable homes per year between 2026 and 2036.
Concerns over affordability and tenure mix
Assembly Member Lord Bailey, Chairman of the Housing Committee, stated: "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."
Green Party London Assembly Member Benali Hamdache criticised the current model: "The data shows that the current model for delivering affordable housing is fundamentally broken. The hope was that building more luxury flats would deliver new council housing. It's clearly not the case. Since 2015 only 10 per cent of affordable home completions were social rent homes, the type of homes we need the most. Things like shared ownership are not affordable, but represent the most common type of so-called 'affordable' housing being delivered."
Silver linings and borough disparities
Despite the shortfall, City Hall officials pointed to improvements: 39 per cent of all completed new build homes in 2024-25 were affordable, compared to just 19 per cent in 2016-17. Additionally, 86 per cent of all new homes started were affordable, up from 46 per cent eight years prior. Tower Hamlets led boroughs with 1,484 GLA-funded affordable home starts since 2023, while Chelsea, Harrow, Bexley, and Richmond upon Thames each saw fewer than 60.
The report notes 341,421 households on social housing waiting lists across London, a quarter of the national total. Newham has the longest list with 41,223, followed by Brent, Lambeth, and Tower Hamlets.
Mayor's response
A spokesperson for the Mayor of London said: "Tackling our urgent housing crisis is one of the Mayor’s top priorities and he is doing everything he can to deliver more homes of all tenures. Sadiq has been warning for some time that the impact of Brexit, the pandemic, high interest rates and the economic shocks caused by global instability mean that we are amid the most difficult period for housebuilding since the global financial crash."
The spokesperson highlighted a record £11.7 billion London Social and Affordable Homes Programme over the next decade, a £322 million City Hall Developer Investment Fund, £1.5 billion in ultra-low-interest loans for housing associations, and plans for 6,000 new rent-controlled homes for key workers.
