London boroughs

London boroughs in zones 5-6 estimated to build just 17% of homes needed

Outer London boroughs in transport zones 5 and 6 are projected to build just 17% of the homes required in 2017, according to a new report.

Figures from business group London First also suggested that zones 1-4 are also set to fall short, building 80% of the new homes needed.

Overall, London is now estimated to complete just 63% of the new homes that the city needs to build this year.

London First believes that – according to the government’s new methodology – zones 1-4 need to build 53,000 homes a year, while 19,000 are required in zones 5 and 6.

The group claimed that London now needs 72,000 new homes, as opposed to the 49,000 homes a year stated in the current London plan.

Naomi Smith, executive director of campaigns at London First, said these new figures were deeply worrying.

“The housing crisis is getting worse, not better.

“London is falling far short in providing the homes it needs.

“The mayor and the government must do more to drive construction in the city, and further devolution of powers to City Hall may be needed to make this happen.”

Adam Jaffe of Investec Structured Property Finance added: “The increasing shortfall in new homes is concerning, especially in outer London boroughs where land is seemingly in more supply.

“Developers need more favourable conditions to unlock land, whether through planning or debt availability.

“At Investec, we see the outer zones (5 and 6) as key areas for funding opportunities and supporting experienced residential developers is imperative to help tackle the housing crisis.”  

Naomi added that this wasn’t just a political issue, claiming: “The lack of building in much of zones 5 and 6 is choking London, pushing up prices and squeezing young, productive workers out of the city.

“The housing crisis is one of the most serious challenges facing business, preventing firms from recruiting the talent they need to grow and succeed.

“Business could provide thousands of additional jobs each year if the cost of housing was more manageable.”

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