The longstanding housing crisis is one of the most noteworthy challenges facing the UK in 2025. It is an issue that evokes passionate responses from people all over the political, societal, and economic spectrum as it ultimately affects us all, albeit some more than others.
The nation has been let down by various governments and leaders, leaving extortionate amounts of homeless and rough sleepers up and down the country, and rendering home ownership somewhat of a pipedream for many young adults. The so-called “social contract” between the UK government and its subjects is arguably meaningless at this stage.
In the southeast, the homeless figures are invariably linked to the capital, where rough sleeping has never been more prevalent. According to Statista, rough sleeping in London increased 19% in 2023/24, with nearly 12,000 people sleeping in the streets.
The decline of social housing and the skyrocketing of citizens without shelter are inextricably linked, and this has been addressed by the PM and Deputy Angela Rayner previously.
While It is undeniably a national crisis, the Mayor of London does have authority over the strategic planning of issues exclusive to London, namely housing in this regard. Sadiq Khan has rightfully been outspoken on the issue in the past, with numerous pledges to end homelessness in the capital by 2030.
The pledges are excellent, but many Londoners, including me, would like to know how this will be achieved. Plans and further pledges are sure to follow as we head into the summer as the London Assembly will be discussing the agenda today.
The London Assembly Housing Committee will convene at 2pm to explore ways to boost funding for social and affordable housing. The discussion will cover the potential risks associated with various financing approaches and examine whether private investment could play a role in achieving new housing targets.
According to the Assembly, the committee will also take stock of Opportunity London - a collaboration between the Khan, the City of London, and London Councils aimed at drawing in investment. Committee members will discuss additional steps the Mayor could take to support the funding of new housing in the capital.
This is not only in response to the soaring figures of rough sleepers. It is also due to the recommendations of the G15 – a group of leading housing associations who aim to address the housing crisis. In 2024, the G15 recommended that associations would need £54 billion of investment to build the number of social homes outlined in the London Plan, which aims to set out the societal framework for economic and social development.
The G15 released “Increasing London’s Affordable Homes” – a research report indicating their key findings which will be discussed in the Assembly.
According to the report, in 2023, 320,000 London families were on social housing waiting lists, 60,000 households were in temporary accommodation and private rentals costs are negatively affecting Londoners, as once housing expenses are considered, one in four people in the city are left living in poverty.
The G15 report said: “To begin to tackle the housing crisis in London, and beyond, we need to build thousands more affordable homes, prioritising homes for social rent. Research has shown at least 90,000 more social homes need to be built every year, for the next decade, to meet demand. Research has also shown that building these homes would add £51.2bn to the economy.”
There will be two separate panels at the meeting, with media members and the public free to attend. The panels will include Will Jeffwitz, Head of Policy for the National Housing Federation; Steve Partridge, Head of Housing Consultancy at Savills; and Piali Das Gupta, Strategy Director for London’s Future & Places at London Councils, among others.
The agenda for the meeting has been released and anybody can access it. Regarding financing housing in London, the Greater London Authority has been asked to consider various issues, including the benefits and risks of different financing models in London, whether private investment could help boroughs meet the new national targets and notably, if there are ways to increase the amount of finance for social housing in the capital.
Last week, the London Assembly released new findings that indicate swift changes are needed to housing policy. Last year, 32,160 additional new homes were completed in London – over 13,000 less than in 2019/20. Also, 336,366 Londoners found themselves on council waiting lists for social housing in 2024 and over 300,000 homes were granted planning permission but not built (Gov.uk).
These figures led to the London Assembly Planning and Regeneration Committee (LAPRC) making recommendations to the Mayor on how to the deliver affordable homes for Londoners. LAPRC advised the upcoming London Plan to “be simpler” with a clear policy framework that prioritises housing as the primary use for suitable undeveloped land across the city. The committee also recommend collaboration between the Greater London Authority and the government, to develop measures that help the Small and Medium Enterprise (SME) development sector in London secure improved financing and access to larger sites.
The meeting will take place at 2pm today and the results, and the sincerity of the discussions are yet to be determined. There is cause for optimism given that the Mayor of London is actively seeking expertise and guidance on how to achieve pledges. You may argue that the methodology should be determined before the results, and personally I would agree with you. Nevertheless, we await the outcome of the discussions, and we hope to provide a positive update in one of the upcoming blogs.