Almost half of London homes given planning permission are not being built
Recent analysis has found that just under half (46%) of London homes given planning permission are failing to be built.
According to the research from London First and Grant Thornton UK LLP, of the 54,941 homes awarded with planning permission in 2014, just 29,701 were under construction or complete in 2017.
In order to meet the growing demand for housing, London’s Mayor Sadiq Khan has set out a target of 66,000 new homes to be built each year. However, the city saw just 26,458 built last year, a small proportion of the anticipated total.
The record number of planning applications submitted last year indicate that there is a clear desire to build; hitting almost 80,000, this is more than double the number of applications submitted in 2010. In contrast, the falling number of homes awarded planning permission extend the downward trend.
However, there does seem to be a slight silver lining for London’s property market. Growing to 14,372, the number of affordable homes in the city has seen an uplift, now representing 30% of permissions granted. Whilst affordable home completions have grown over the past seven years – from 2,379 to 7,510 in 2017 – the supply still fails to meet the level of demand.
Commenting on the analysis was Ian Tasker. The Government and Infrastructure Advisory from Grant Thornton UK LLP stated: “We are still falling seriously short of the level of housebuilding needed to combat the ongoing housing crisis. Permission rates for applications in London have fallen for the fourth consecutive year while the increase in completions has been marginal.
“With the Mayor’s target now set at 66,000 homes, we simply do not have enough permissions in the pipeline to reach this number. Without dramatic change and more direct intervention to find out why we are failing to substantially increase this output, this target is not going to be achieved; we need to address this now.”