London is building affordable homes at a concerningly low rate, according to the latest London Assembly Affordable Housing Monitor.
The annual report, which is published by the London Assembly Research Unit, reveals that while thousands of homes have started construction, the scale of housing need far surpasses the number of houses that are being delivered.
The report assesses progress under the Mayor of London’s Affordable Homes Programme and finds that key targets have again been missed.
This comes despite the fact that targets had already been revised downwards.
Under the 2021-26 Affordable Homes Programme, 14,335 affordable housing starts were recorded by March 2026.
This fell short of the revised target range of between 17,800 and 19,000 homes.
The enormity of that gap becomes even clearer when compared with estimates of housing need.
The Greater London Authority’s report suggests that London requires 45,500 new affordable homes every year for the next decade to meet demand.
Yet in 2024-25, the city’s affordable housing stock increased by a net total of just 8,184 homes.
This means that London is currently delivering less than one-fifth of the affordable homes considered necessary to meet demand.
More than 341,000 households were on local authority housing waiting lists in March 2025. underlining the growing demand for social and affordable housing.
One of the most striking findings is the number of homes that have started construction but remain unfinished. Across the Mayor’s two affordable housing programmes, more than 43,000 homes are still awaiting completion.
This backlog includes 32,081 homes from the 2016-23 programme and a further 11,728 homes from the current 2021-26 programme.
While these homes could eventually boost London’s affordable housing stock, delays mean they are not yet available.
Commenting on the report, Lord Bailey of Paddington AM, Chair of the London Assembly Housing Committee, said affordable housing delivery remains well below what the capital requires.
He noted that even after housing targets were revised downward, they were still missed, adding that this raises serious questions about what changes are needed if future programmes are to succeed.
Samantha Parker said that she has been waiting for a council home in her preferred area of Lewisham for over two years. She said:
“I’m going to have to start bidding on houses all over London, when really I need to be near my community for my mental health. Even if I look further afield I’m not guaranteed anything.”
Without a significant increase in output, the gap between housing supply and demand looks set to remain one of the capital’s most pressing social and economic issues.
Featured image credit: Wikimedia Commons
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