The ‘Mind the Gap’ report found that only 30,000 homes were completed in London in the year to June 2025, as measured by the number of properties issued EPC certificates.

This is down 12% from the previous year.

Planning permissions have also fallen, down to the lowest level since records began in 2006 with only 966 projects approved in the 12 months to June 2025.

This period saw the number of new home building sites fall by 38%.

The capital is expected to deliver 440,000 new homes as part of the government’s 1.5 million new homes target by 2030.

Against an annual target of 88,000 homes a year, HBF has calculated London’s output needs to more than double and increase by 175% to meet this figure.

HBF also highlighted the ongoing shortage of affordable housing with those living in London facing the highest barriers to home ownership in the country.

It is estimated that a first-time buyer in London would need to save 50% of their discretionary income for over 13 years to afford a deposit.

Only 15% of first-time buyers purchased a home in London in 2023/24, down from 25% a decade before.

HBF has identified several barriers as exacerbating the situation.

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These include a lack of buyer support, extensive planning permission delays and numerous new complications from the Building Safety Regulator.

The HBF is now pushing for greater support to be provided for first-time buyers, and a streamlined and “more practical” London plan for housing delivery.

The latter would include an acceleration of the Mayor of London’s plan to assess green belt land.

Elsewhere, the HBF is calling for the government to restore market confidence by reintroducing a targeted home ownership scheme and calling the introduction of the Building Safety Levy.

Neil Jefferson, CEO at the HBF, has said these findings are a “major wakeup call” for both the government and the Mayor of London.

“The capital needs an urgent overhaul of housing policy if it is to support the housing needs of Londoners,” said Neil.

“London Plan policies combined with additional government taxes on new homes, onerous processes to get higher-rise schemes approved and challenging market conditions have effectively made London a no-go zone for housing investment.

“If the government is to stand a chance at making its aspirational 1.5 million homes target a reality, ministers must prioritise action to reverse the alarming decline in housing delivery across the capital.”