The GLA’s 2024 Housing In London Report was published this week, swiftly off the back of the Affordable Housing Monitor which was published in September 2024. The report is part of the evidence base for the Mayor's housing policies, summarising key patterns and trends across a wide range of topics relevant to housing in the capital.

Whilst it is an evidence base document, it provides a valuable insight into the state of the housing market in London, set against the actual number of starts and the delivery of homes year on year. The Report is split into five key areas, those being:

1. Demographic, economic and social context
2. Housing stock and supply
3. Housing costs and affordability
4. Housing needs, including homelessness and overcrowding
5. Mobility and decent homes

Amongst some positives, the challenges are abundantly clear within the data, showing some of the widespread challenges facing the industry in terms of delivering high quality homes. We have picked out three key talking points from the report.

Affordable Homes

There has been a 91% drop in affordable housing starts funded by the GLA from 2022/23 to 2023/24. The number of affordable home starts funded from the GLA was only c. 2,300 last year, compared to 25,600 the prior year. The accompanying commentary states: 

• There are several reasons behind the sharp drop in delivery. These include financial challenges facing registered providers and local authorities due to higher borrowing and materials costs, competing pressures from remediation and refurbishment costs, and changes to regulation.

Figure 1: Graph showing the GLA's affordable housing statistics

Council Homes

The number of “Council” starts also decreased by a significant number, with less than 1,000 last year across all London Boroughs. The commentary states:

• The decrease year-on-year is due to a variety of factors, however local authorities have also been affected by the rising costs of temporary accommodation. According to London Councils, boroughs’ spending on TA increased by 40% in the year to September 2024.

Figure 2: Graph showing council home starts and completions

Homelessness

There has been an increase in households being classified as homeless / in temporary accommodation.

• At the end of March 2024 there were 65,280 households living in temporary accommodation arranged by London boroughs, an increase of 9% in a year and the highest figure on record. These households included 86,810 children, an increase of 13% in the last year. The majority of homeless households placed in temporary accommodation in London have been there for more than two years, and the number who have been there for more than five years (16,870) was more than 11 times higher than in the rest of England.

Figure 3: Graph showing quantum of homeless households from 1988 to 2024

Summary

The Housing in London Report provides a very useful indicator of housing starts and delivery in the Capital, and this year marks a significant downward trajectory for some significant metrics. Hope is that that Labour Government can provide certainty to the sector, so starts and delivery – particularly with affordable housing - can get back up to a position where it is meeting the needs of Londoners.

Rob Reeds, Planning Director (London and South) says “The GLA’s report also includes interesting data on the number of homes granted year on year within London. Trends show that while bigger Schemes are being consented (with an average of 35 homes per project), the number of homes gaining planning consent is down 36%. This is clearly isn’t where the GLA want to be, but there is hope that planning reform and a clear direction from the new Government can provide the clarity and confidence developers, registered providers and Councils need to progress Schemes through the planning system”.

Amanda Stevens, Associate Director at Ikon says "Making schemes viable enough to develop is even more challenging now, so building efficiency and value optimisation are key. Ikon have developed key design and performance metrics to continually scrutinise developments from the earliest stages of design through to contractor procurement. This, alongside robust objective setting from the outset, helps navigate the inevitable conflict of time, cost, programme, quality and sustainability through design development".

LSH Planning, Regeneration + Infrastructure (PR+I)

The Planning Regeneration + Infrastructure Team at Lambert Smith Hampton comprises over 100 specialist town planners and surveyors, development consultants, urban designers & masterplanners, town centre regeneration experts, economists, compulsory purchase order (CPO) / land assembly advisers, transport & infrastructure specialists, and dedicated public sector consultants. 

IKON Consultancy

Ikon is a professional residential and mixed-use consultancy focused on providing a range of high quality value add services to private, public and housing association clients working across the wider regeneration sector.