Sadiq Khan scheme built just 71 affordable homes in three months and needs to start 22,000 more to hit 2026 target

Tories acuse London mayor of ‘unacceptably low’ levels of affordable housebuilding in capital

Mayor of London Sadiq Khan tries his hand at bricklaying during the topping out ceremony of a new affordable housing development in the Royal Docks, east London (PA)

One of Sadiq Khan’s housing schemes oversaw the completion of just 71 new affordable homes in London during the last economic quarter, while the project now needs to begin construction on 22,000 more in the next 19 months to hit its target.

The mayor’s Affordable Homes Programme 2021-26 (AHP) also only started work on a further 150 properties between April and June 2024, according to new figures released by the Greater London Authority (GLA) on Tuesday.

The AHP, funded with £4bn of government money and managed by City Hall, was launched in 2021 and was originally meant to begin construction on 35,000 dwellings across the capital by March 2026.

But the project has been beset by delays. The London Assembly said in September 2023 that no works had been started under the scheme and its housing target was cut last year to between 23,900 and 27,200.

GLA figures show that construction had since got underway on 1,853 dwellings by June this year. This means work must begin on more than 22,000 homes for the AHP to reach the lower end of its 2026 target - around 3,100 per quarter.

City Hall insists it doesn’t have quarterly targets, but measures its progress over the five years of the programme. It also said delivery typically increases towards the end of each financial year and fluctuates throughout the year.

Mr Khan’s other programmes have delivered a total of 1,025 homes in the last quarter.

Affordable homes are those sold or let through various public and private schemes at 20 per cent below local market value to help individuals who live in the area but may struggle to afford open market prices. In London, the mayor has prioritised homes for social rent, London Living Rent, and shared ownership, which will typically be available at a deeper discount to market prices than 20 per cent.

The Tories have written to housing secretary Angela Rayner, demanding she put the GLA under “special measures”, saying the number of affordable homes being built in the capital is “unacceptably low”.

Sadiq Khan (Jordan Pettitt/PA) (PA Wire)

Referring to the latest figures published by GLA, London Assembly member Shaun Bailey said: “These numbers are clearly unacceptably low, and are inconsistent with the housebuilding ambitions of both your department and the manifesto on which the Labour government was elected on last month.

“Over the last eight years, the mayor of London has consistently demonstrated that he is unable to meet the scale of London’s housing challenges, with the number of new homes built in the capital falling to record lows under Sadiq Khan’s leadership.”

Government figures show that there were more “net additional dwellings” created in London during Mr Khan’s first two terms in office than were created during Boris Johnson’s eight-year stint in office.

In his letter to Ms Rayner, Lord Bailey added: “We are, therefore, urging you to use your powers as secretary of state to place the mayor of London and the GLA in special measures.

“Without tailored support and additional oversight from your department, sadly it is abundantly clear that Sadiq Khan will not be able to deliver the number of homes London requires, and that targets alone are no longer enough to tackle the scale of the problem.

“Given how significant this is for so many people, I genuinely hope that we are able to put political differences aside and give Londoners the best possible chance of having a home of their own.”

Shaun Bailey says the mayor and GLA should be placed in special measures (Reuters)

Last month, Ms Rayner outlined Labour’s plan for a housing “revolution” across England, with the party planning a major overhaul of the planning system.

She warned that Britain is facing the “most acute housing crisis in living memory”, claiming that the number of new homes is set to drop below 200,000 this year – something Ms Rayner dubbed “unforgivable”.

The overall housing target for the UK will increase to 370,000, replacing the previous Tory government’s advisory target of 300,000 homes per year.

But government officials said London’s target would fall from 100,000 homes per year to 80,000.

Ms Rayner claimed the previous figure was “absolute nonsense” and an “arbitrary figure”, denying that the government is “lowering our ambition for London”.

A spokesperson for the mayor of London said: “The mayor has hit every Affordable Homes Programme target he has been set, including the landmark target of building 116,000 new genuinely affordable homes in the capital through the last Affordable Homes Programme, while the previous government failed to hit its national target.

“Despite a doubling of affordable housing completions in 2023-2024 compared to when Sadiq was first elected, these latest figures underline the major challenges currently facing the sector, including high construction costs, increased borrowing costs and the need to address building safety issues.

“The fact remains that London is still recovering from the disastrous inheritance from the last government, which scrapped housing targets and brought housebuilding to its knees through a combination of underinvestment, policy uncertainty and indifference.

“The mayor is determined to build the genuinely affordable homes that London needs and is already working hand-in-hand with the new pro-homebuilding government to ensure London’s affordable housing delivery target is met, helping to build a fairer London for all.”

A spokesperson for the Ministry of Housing, Communities and Local Government said: “We know we must radically boost housebuilding in the capital. This is why under our plans, London will be asked to deliver record levels of housebuilding.

“This Government will work in lockstep with the Mayor to increase housing delivery and the number of affordable homes in the city.”