Recent analysis by APRAO, a property development appraisal software company, has revealed a modest increase in new home construction in London since Sadiq Khan became Mayor in 2016.
Although London has delivered the second highest number of new homes among English regions since then, with 147,490 units, the increase of 9.4% compared to the period before his election is the smallest regional uplift in England.
In contrast, regions like the North West have seen a 73% surge in new home construction over the same timeframe. London’s relatively stagnant growth is particularly stark given its significant needs due to a larger population.
The London housing market has also experienced the lowest house price growth rate in England during Khan’s tenure, with an increase of just 7.5%, compared to a national average of 31.5%. The North West leads with a 44.8% rise in average house prices.
Daniel Norman, CEO of APRAO, commented on the findings: “Regardless of your political allegiances, there’s no disputing the fact that the London property market has slumped somewhat since Sadiq Khan became mayor, both with respect to house price growth and the increased delivery of new homes.
“Yes, London may have seen the second highest number of new homes delivered during this time, but it’s also important to note that the requirement for new homes within London and the South East is far greater due to larger population sizes.
“It’s clear that with the London property market struggling to the greatest extent with respect to house price growth, the capital’s developers simply haven’t had the confidence to keep their foot on the pedal.
“As a result, London has seen the lowest increase in new homes built versus the same period prior to Sadiq Khan’s initial election. However, the reality is that the growing issue of London’s housing crisis isn’t down to one person or one political party.
“It’s a serious issue that requires a long-term plan to resolve and this unfortunately doesn’t fit with the relatively short life span of a political career – Even if that career does stretch over three terms.
“Time and time again we’ve seen housing-related issues receive the cold shoulder as those in government are only focussed on short-term wins to aid re-election.
“God forbid they implement any meaningful solution as by the time such an initiative starts to bear fruit, they would no longer be around to claim the success.”
