House Building: London

Gareth Bacon Excerpts

Wednesday 5th November 2025 Westminster Hall

[Gareth Bacon (Orpington) (Con)]

It is a pleasure to serve under your chairmanship, Mr Mundell, and to take part in this debate about Government support for house building in London. As is the case for all hon. Members here today, this issue is of great importance to my constituents and to me, and I thank my hon. Friend the Member for Old Bexley and Sidcup (Mr French) for securing this important debate. I also thank all hon. Members for their contributions.

London is Europe’s wealthiest city, one of the world’s most desirable destinations and the capital of our great country. I am deeply proud to have represented part of it for the past 28 years, having previously served for 23 years as a local councillor in a London borough—a period that overlapped with my 13 years as a London Assembly member—and been the Member of Parliament for the wonderful people of Orpington since 2019.

What we have seen in recent years in Greater London is a constantly worsening housing shortage, and a mayor seemingly completely incapable of tackling a problem that is spiralling out of control. Sir Sadiq Khan has been mayor for nearly 10 years, and continues to oversee one of the greatest housing failures this country has ever seen. I can remember sitting in the chamber at City Hall in his first year as mayor when he boasted about having negotiated the highest housing funding settlement in the history of the mayoralty. He was awarded £4.82 billion to deliver 116,000 affordable homes between 2016 and 2021, and a further £4 billion to deliver 35,000 affordable homes between 2021 and 2026. That is a total of £8.82 billion to deliver 151,000 homes in a decade between 2016 and 2026. Naturally, he gave no credit at all to the Conservative Government who gave him that money, but let us gloss over that.

Instead, let us focus on Sadiq Khan’s record. To date, 77,622 affordable homes have been completed from the two programmes—barely half of what was envisaged, with only six months to go. Including those programmes and other house building, in his almost decade-long tenure at City Hall, he has averaged 8,240 affordable homes per year. That compares with an average of 11,750 per year between 2008 and 2016 under his predecessor Boris Johnson. That is a 30% decrease under Sadiq Khan, despite what he boasted at the outset was the highest housing funding settlement in history.

The fact is that development has become so costly and over-regulated on Sadiq Khan’s watch that, incredibly, as my hon. Friends the Members for Old Bexley and Sidcup and for Bromley and Biggin Hill (Peter Fortune) pointed out, 80% of housing developments finished in London last year received planning permission under the London plan set out by Boris Johnson before he left office as Mayor of London in 2016, rather than under Sadiq Khan’s London plan.

[Emily Thornberry]

Will the hon. Gentleman give way?

[Gareth Bacon]

I am afraid I cannot, because we are under time pressure.

A report recently released by the Centre for Policy Studies described London as

“The City That Doesn’t Build”.

It is impossible not to agree with that when the mayor’s record is put under scrutiny. Under Sadiq Khan, housing starts have collapsed in London, with the number of private homes under construction set to slump to only 15,000 in 2027—a mere a quarter of what should be expected.

Analysis from the Centre for Policy Studies has shown that, over the last financial year, only 4,170 homes have been started in London, amounting to less than 5% of London’s 88,000 home target. In the first half of this year, that has hardly been improved on, with just 2,158 private housing starts, again versus a target of 88,000 per year. Those totals are disastrous. The mayor, the Secretary of State and the Prime Minister should be reversing those figures, not indulging or excusing them.

The picture becomes even worse when we look at affordable housing. Affordable homes had just 347 starts between April and June, which is around 15% of the total starts for 2023-24, and just 9% of the total starts in 2024-25. Prior to the general election last year, the Mayor of London was telling anyone who would listen that he needed £4.9 billion per year for the next 10 years to build affordable homes. The Government elected last July did not accede to his request. Given his appalling record over the past decade, I cannot say I entirely blame them for not trusting his ability to deliver.

At the last spending review in June, as has been mentioned, £11.7 billion was awarded for the next affordable housing programme, which will run from 2026 to 2036. At the last round of Ministry of Housing, Communities and Local Government questions, when I asked the Secretary of State what he was doing to hold the Mayor of London to account for his lamentable record of failure, he alluded to a pending announcement. As the hon. Member for Sutton and Cheam (Luke Taylor) noted, a written ministerial statement was snuck out without fanfare a couple of weeks ago that announced temporary reforms to London house building to try to cover the mayor’s decade of failure.

Some of those proposals are welcome, including the sensible removal of elements that can constrain density, such as dual aspect and units around the core of a building, as well as some of the changes to the insistence on arbitrary and unviable affordable housing targets. However, it is deeply concerning that the Government are proposing to reward the mayor’s decade of failure by giving him more power to intervene on democratically elected local councils and take planning powers away from them.

Most worryingly, that gives the mayor considerable additional powers to concrete over the green belt. There is nothing in the statement about facilitating brownfield development, despite the CPRE report published last month that shows that Greater London has the capacity to deliver in excess of 462,000 new dwellings on brownfield land. The Minister is a very decent man; he is respected across the House, including by me. When we hear him speak in a few moments, I am sure he will give us invaluable insight into how the Government justify these shocking figures. However, to me, they are simply not doing enough to build or to hold the mayor to account for his failures.

The Home Builders Federation has written to the independent Office for Budget Responsibility to say that, without changes to boost affordability for first-time buyers and tax cuts, the Government will miss their national housing target. Another study by the planning and environmental consultancy Lanpro suggested that, at the present of rate of building, the Government would fall 860,000 homes short of their national target—that amounts to missing the target by 57%. Together, the Mayor of London and, more recently, the Government have shown that they are anti-business and anti-growth, with spending and borrowing rising, and with inflation at almost twice the target level, as well as anaemic growth, over-regulation and rising taxation curbing any chance of a housing recovery at every turn.

As I have outlined, this is being felt most in our capital city. I am deeply proud to be a Greater London MP, to have been the London Assembly member for Bexley and Bromley, to have been the Conservative leader at City Hall, to have been a London borough councillor, and to live and work in this great city. That is why I care so much about holding this Government—and specifically their shambolic colleague, the Mayor of London—to account for their abject failures to get house building in London to flourish. Action is sorely needed and desperately wanted. The Government need to do a lot more, and they need to do it now.

[David Mundell (in the Chair)]

I call the Minister to respond to the debate, and perhaps he can give Mr French a minute at the end to wind up.