According to data from Savills Research, London’s population is expected to exceed 10 million by 2035, with 345,000 people living in inner London.

The current supply of new homes in the capital is only meeting 40% of an estimated need.

The firms’ analysis shows that if inner London were to deliver all identified capacity over the next decade, 78% of housing will be absorbed by projected household growth.

This mismatch between need and supply will result in a 43% increase in the number of households that cannot afford to live within inner London by 2035.

At the same time, the capital will need a larger workforce to support a growing population.

Savills Research has calculated that 200,000 new workers will be needed by 2035 in sectors such as healthcare and education.

Using these findings, Dolphin Living is calling for more affordable homes to be delivered for median earners who are not eligible for social housing but are still being priced out the market.

•   'Overly prescriptive' London Plan needs more strategic focus, urges BPF
•   Local authority trading companies and the challenge of building like it's 1977
•   Over 4000 construction firms collapse in a year as NI hikes and wage pressures bite

Median earners are defined as those with a household income of between £45,000 and £90,000.

“As of today, 900,000 households in London cannot afford market housing that meets their needs, yet don’t qualify for social housing, with Inner London alone accounting for 200,000 of those,” said Olivia Harris, CEO at Dolphin Living.

“We need to build more homes for workers on median incomes to support those who currently cannot afford housing that meets their needs as well as the hundreds of thousands of new workers.

“Homes for intermediate rent for workers on median incomes in Inner London should be a key focus within future housing and economic growth policy.”

Jacqui Daly, director at Savills Research, added: “Reduced housebuilding combined with high prices is putting further pressure on already stretched resources and household budgets.

“Decisive government intervention is needed to support housing demand, and a step-change is essential to create a more affordable and sustainable housing market for Londoners.”