London Mayor Sadiq Khan has reaffirmed the importance of creating affordable housing both nationally and in London.
Speaking at the Centre for London’s annual conference, Khan called for more investment in housebuilding, quoting analysis that a 1% fall in house prices in the city would boost London’s economic output by 7.3 billion pounds over a decade.
He said: “If there was ever a time for more public investment in housing then it’s now. And if there was ever a place to show how government still has the capacity to improve the condition of people’s lives, then it’s housing.
“As well as doing everything I can from City Hall, I’ll continue to make the case for the national investment we need – for the benefit of London and the whole country.”
Khan outlined proposals for the creation of a devolved City Hall Developer Investment Fund, and for the easing of constraints on local government to borrow to build.
He also hit out at the previous governments, saying that “The cupboard was left bare” when he came into office eight years ago.
Khan added: “The mess left by the last government has had a catastrophic effect on housebuilding.
“Funding for new social housing was slashed. Local authority housing and planning budgets were cut to the bone. And the implementation of vital second staircase regulations were botched, slamming the brakes on tens of thousands of homes.
“All of this – combined with the economic legacy of low-growth, high interest rates, the rise in the cost of construction materials, a shortage of workers, and the lasting impact of a hard Brexit – has left house building on its knees.
“The housing industry rightly and repeatedly warned the previous government that it’s approach would severely hit housebuilding. But they were ignored. This has left their fears to come to pass – and is being felt most acutely in London.
“The truth is we’re in the midst of the most difficult period for housebuilding in the capital since the global financial crash of 2008.”
