London's affordable housing crisis has reached alarming new levels as recent data reveals a dramatic collapse in construction starts during the first half of the financial year.
Staggering Drop in Housing Starts
Official figures from the Greater London Authority paint a bleak picture for the capital's housing situation. Between April and September this year, developers began work on just 1,239 affordable homes across London.
This represents a catastrophic decline when compared to the 3,991 starts recorded throughout the entire previous financial year. The current rate suggests the city is on track for its worst affordable housing performance in recent memory.
Revised Targets and Political Fallout
The alarming statistics emerge despite a recent agreement between the Mayor's office and central government to significantly reduce affordable housing expectations. Earlier this year, the target for the Affordable Homes Programme between 2021 and 2026 was slashed by over a fifth.
The revised goal now stands at between 17,800 and 19,000 starts, down from the original ambitious targets. However, with only 6,370 affordable homes commenced since the programme was finalised in 2023, serious questions are being raised about whether even these reduced expectations can be met.
Liberal Democrat London Assembly Member Hina Bokhari didn't mince words in her assessment. "Londoners are desperate for affordable homes – it's the number one thing most people want the Mayor to deliver," she stated.
"But under his watch, affordable housebuilding has dropped off a cliff and the pipeline for new homes has dried up. The latest stats are even worse than anticipated and show that for all his promises and targets, the Mayor hasn't got a handle on this crisis."
Borough Breakdown and Completion Concerns
The housing crisis is affecting boroughs unevenly across the capital. Four London boroughs – Richmond upon Thames, Lambeth, Hackney and Merton – have recorded zero affordable housing starts since April.
Ealing leads with the highest number of starts at 235, followed by Sutton with 224. The completion figures tell an equally worrying story, with just 2,904 affordable dwellings finished in the first six months of 2025-26.
This compares poorly with previous years, which saw 11,636 completions in 2024-25 and 10,949 the year before.
The GLA data release comes weeks after ministers agreed with the Mayor to dramatically reduce affordability requirements for developers. The new policy fast-tracks planning applications for projects including just 20% affordable housing, down from the previous 35% requirement.
Labour's housing spokesperson on the London Assembly, Sem Meoma, pointed fingers at both the previous government and private developers. "We're now seeing the results of previous government's continual freezing and scrapping of funding for affordable housing," she commented.
Deputy Mayor for Housing Tom Copley has previously cited multiple challenges, including Building Safety Regulator delays, record material costs linked to the war in Ukraine, increased labour expenses following Brexit, and high interest rates affecting both developers and potential buyers.
With developers needing to start work on at least 11,430 affordable homes before March 2026 to meet the Mayor's promise, the pressure is mounting for immediate action to address London's deepening housing emergency.
