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2w ago

London Affordable Home Starts Drop to 347 in Q2, Leaving 12,300-Home Gap

Delays from the Building Safety Regulator, high borrowing costs, unanswered funding demands have widened the shortfall just nine months before the March 2026 deadline

London’s figure of 1.04 homes per thousand dwellings was a 73 per cent fall on the year before
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A housing scheme in Bressy Avenue, Enfield, jointly funded by the council and City Hall
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Overview

  • Only 347 affordable homes began construction in London during April–June 2025, the lowest quarterly total of the current programme.
  • Total starts stand at around 5,500, leaving London about 12,300–13,500 homes short of the revised 17,800–19,000 target with nine months remaining.
  • Enfield led boroughs with 181 starts, while 27 boroughs recorded fewer than ten, highlighting uneven delivery capacity across the capital.
  • City Hall blames funding gaps, rising building costs and regulatory delays at the Building Safety Regulator for the stalled start rate.
  • Industry groups point to Budget-driven uncertainty and weak first-time buyer demand exacerbating bottlenecks even as City Hall secures an £11.7 billion funding package and considers green-belt development.