Next London mayor faces "formidable" housing deficit

London's future mayor faces a "formidable housing challenge", as the capital enters 2016 more than a fifth behind its new homes aims, according to Stirling Ackroyd.

Related topics:  Finance News
Rozi Jones
25th February 2016
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Across the whole of 2015, 32,910 new homes were granted approval by planning authorities across Greater London, meaning the annual supply of homes is 22% behind official targets for 42,000 completed London homes per year.

If every single application had been approved by Greater London councils as suitable for development, then London would have been closer to reaching its housebuilding targets. Applications in 2015 represented a total of 42,910 potential new homes. However only 77% of these were accepted by planning authorities.

Andrew Bridges, managing director of Stirling Ackroyd, commented:

“London has the finance, the space and without doubt the demand for new homes – but it seems this great city doesn’t have permission. With less than three months to go until London’s next mayor is elected, it’s time for candidates to get serious about places for Londoners to live.

“Always a fan of a classical reference, Boris might be first to admit that the housing pipeline has been the Achilles’ heel of his mayoral incumbency.

“Fresh candidates of all stripes should be willing to rise to the housing challenge, as well as supporting the easier issues that have progressed better for Boris.

“Politics and personalities aside, today’s housing deficit is deepening and the electoral clock is ticking. The mantra in 2016 should be planning, planning, planning.”

In Q4 2015, just 7,240 new homes received approval from London’s planning authorities. This figure compares with a Q1 total of 11,870, with 8,060 in Q2 and 5,740 in Q3.

Turning to individual boroughs within London, Greenwich has proved most proactive in leading the fight to halt housing shortages. In 2015 Greenwich accounted for 3,666 new homes finding their way through the planning system. During Q4 2015 alone, Greenwich also approved the highest number of new home applications in absolute terms – granting permission for 818 homes in just the final three months of the year.

Tower Hamlets follows in second place – approving applications accounting for 3,628 homes, of which 478 homes were given the go-ahead by Tower Hamlets in Q4.

In terms of the proportion of homes allowed, Westminster council leads the whole of Greater London – giving approval to 95% of homes mentioned in planning applications in 2015.

Greenwich, Camden and Southwark all allowed 94% of new homes mentioned in 2015 planning applications.

Meanwhile, Bromley granted permission for just 30% of all new homes applications over the course of 2015, while Hillingdon allowed 36%.

Andrew Bridges concluded:

“Different parts of the capital are confused about which housing direction to take and this has led to an unsustainable mix of leniency and rigidness. London is missing a consistent plan – something ambitious future mayors should be able to offer.

“Different parts of London have different needs and potential for new housing. Not every single planning application will be suitable for an area – or even the best way to improve the density and provision of homes – so a 100% rate of approvals would not necessarily be a good idea. But 30% cannot be right.

“Planning departments do have an important place. Yet planning needs to follow some kind of sustainable plan. It’s hard to imagine an ambitious vision in action when some boroughs are rejecting seven-tenths of homes.”

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