Meeting housebuilding targets could cut London rents by £251 monthly

Summarised from 2 outlets · Updated 2 Nov, 12:22 · Archive

Research suggests hitting national housebuilding targets would reduce average London rents by £251 a month over five years.

The Centre for British Progress has published research suggesting that if the government meets its national housebuilding targets, average rents in inner London could fall by £251 a month over five years. The government has committed to building 1.5 million homes across England between July 2024 and the next general election, including 88,000 homes annually in London. However, ministers have already admitted there is only a 'slim chance' of reaching the target. Sir Sadiq Khan's London Plan suggests that even under favourable conditions, only around 55,800 homes can be built annually in the capital over the next decade.

The CBP argues that increasing housing supply would drive down rents through so-called 'moving chains', where new-build properties free up older, cheaper homes for people further down the housing ladder. Meeting national targets would increase London's housing stock by 2.3 per cent annually. Over five years, this would result in rents being 9.7 per cent lower than they would otherwise have been. For tenants renting a typical two-bedroom flat in inner London, that represents a saving of £251 a month by the fifth year compared to current building levels.

Between 2000 and 2019, London's population grew by 1.653 million, but only enough housing was added for 1.387 million people. Current building rates have collapsed over the last decade due to high interest rates and construction costs reducing viability for developers. London renters currently spend more than 40 per cent of their pre-tax income on rent.

How it is being reported

• Meeting housing targets could cut London rents by £251 a month, report claimsA think tank says delivering the Government's housebuilding ambitions would save London renters thousands of poundsEvening Standard · 2 Nov, 12:09
• Hitting 1 key target could knock £251 a month off London rents to give 'families breathing space'Between 2000 and 2019, London’s population grew by 1,653,000 – but only enough housing was added for 1,387,000 people. Increased demand for housing has driven up pricesMyLondon · 1 Nov, 08:18

In this story: Centre for British Progress · London · Sadiq Khan · England

This summary was written by AI from the headlines and standfirsts above, and states as fact only what at least two outlets report. How we use AI · Report a problem · Corrections log