House Building: London

Debate between Gareth Bacon and David Mundell

Wednesday 5th November 2025 Westminster Hall

[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.