Report: London Needs 800,000 New Homes

Report: London Needs 800,000 New Homes

Residential News » Europe Residential News Edition | By WPJ Staff | September 17, 2013 9:47 AM ET

London will need more than 800,000 new homes by 2021 to meet the needs of the growing population, a new report says.

London Councils estimates that 526,000 new homes will be required simply to keep up with new housing demand in the capital. Another 283,000 will be needed to satisfy the backlog of demand, the group says.

London's population is forecast to grow by 1 million in the next decade.

According to the Councils:

"Current housing supply levels suggest that there will be a deficit of 559,000 homes by 2021 - which even when excluding factors such as overcrowding still amounts to 329,000 fewer homes than London will require. This will put London's future status as a global city at risk while adding huge pressures to government and individuals' budgets."

London Councils, a lobbying group for London's 33 local authorities, based its analysis on data from the Department for Communities and Local Government (DCLG) and Greater London Authority (GLA).

"The news that London needs almost a million homes by 2021 is a scandal," said Mayor Sir Steve Bullock, London Councils' executive member for housing, said in a statement. "The last time we faced such an acute housing supply crisis was after the Second World War. This is a long time coming and the capital's future prosperity is on the line."

To boost housing, the group is advocating for the lifting of the "Housing Borrowing Cap," which "prevents councils investing in housing," and increased investment in the rental sector and small scale builders.

London home prices continue to rise, raising concerns that many people are being priced out of the market.

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