London’s status as a global city is at risk unless more than 800,000 homes are built in the next eight years.
Projections suggest only 250,000 will be completed in that time, leaving the capital in a deep housing crisis.
In a research document published today London Councils — which represents the capital’s 33 local authorities — says ministers must remove a cap on council borrowing so that authorities can boost housing supply.
The research found 809,000 homes are needed by 2021 to meet new as well as existing housing demand.
Sir Steve Bullock, London Councils’ executive member for housing, said: “The capital’s future prosperity is on the line.” London Councils said £50 billion has been spent on housing benefit in the past decade comparing with £17 billion on building new homes.
Londoners paying rent now have an average £2,800 less disposable annual income than three years ago, according to research. The HomeLet Rental Index shows the average cost of renting a home increased by 1.5 per cent during August to £1,316 per month.
