Press Release

More new homes built in London last year than any time since the 1970s
7-2-2008   079

More than 33,000 new homes were built in London last year - the largest annual figure since 1977, the Mayor Ken Livingstone announced today (Thursday 7 February). A total of 11,980 affordable homes were also provided – an increase of more than 70 per cent since 2000.

Figures released today by the Greater London Authority show for the first time home building in London last year exceeded the Mayor’s target that 30, 500 new homes be built each year - an 80 per cent increase since 2000.  The delivery of affordable homes, at its best level since 2000, is particularly encouraging news for Londoners, who now report housing, and particularly affordable housing, as their most important concern.

This provides a firm basis for the Mayor’s new target to build 50,000 new affordable homes over the next three years, a programme that will benefit from the increased funding from Government to support affordable housing in London over the same period.

But despite the overall increases, there are still stark differences in the provision of new affordable housing between boroughs and the Mayor has reiterated his call for all boroughs to play their part in supporting efforts to get more homes built in London. This is essential to meet the needs and aspirations of Londoners, with the Annual London Survey for 2007 showing that the price and availability of housing is now Londoners’ most pressing concern.

The Mayor of London, Ken Livingstone, said:

‘Housing is now Londoners’ main concern, and these figures, coupled with more investment for affordable housing, demonstrate that the prospects for building more homes are encouraging.  We are really getting to grips with London’s housing crisis and this news proves that setting targets for new homes, especially affordable homes, is essential if we are to offer all Londoners the opportunity of a home of their own.‘

The Mayor also welcomed the setting up of a new body, the Homes and Communities Agency (HCA), to support housing and regeneration nationally, which will see the merger of the Housing Corporation and English Partnerships. The Mayor, Ministers and the new Chief Executive of the HCA, Sir Bob Kerslake, have agreed to work together to establish a joint arrangement for London to deliver the HCA’s £2 billion per year programme in London.

The Mayor will chair a new HCA board for London, which will also include senior representation from the HCA and from London boroughs. This will ensure the HCA’s investment programme delivers the Mayor’s new Housing Strategy. The new delivery arrangements will help to establish a stronger and more coherent approach to supporting new housing and renewal in London.

The Mayor said:

‘My new housing strategy sets out clear policies to help make housing more affordable for Londoners, and especially for those struggling to find family housing. Sir Bob Kerslake and I have agreed a clear basis on which the new Homes and Communities Agency will work in London and are looking forward to working closely with boroughs, builders and local communities to help provide the homes this city needs. These new arrangements will bring the delivery of housing and regeneration far closer to London’s specific needs than has ever been possible before’.

HCA Chief Executive Sir Bob Kerslake said:

“London will form a key part of the programme of the new Homes and Communities Agency. The key to the delivery of more high quality affordable homes in London is for the HCA to support the delivery of the Mayor's housing strategy through the establishment of a close working relationship with the Mayor’s Office and every London Borough.  That is what this new arrangement will secure.”

Notes to editors

1. The latest Annual London Survey commissioned by the Greater London Authority (GLA) and carried out by Ipsos MORI showed that the top issue concerning Londoners is the cost of housing. For the second year running, affordable housing has overtaken crime and safety as Londoners top issue. More than eight out of ten people say the cost of housing is a problem affecting their quality of life (83 per cent).
2. The GLA and Department for Communities and Local Government (CLG) collect data from local authorities on housing delivery. The 2006/7 figures for London are in the attached tables. Further detail will be provided in the London Plan Annual Monitoring Report, which will be published in February 2008.
3. In 2006/7 there were 33,007 gross new build homes. This is the total number of new self-contained homes built in the financial year 2006/7.
4. The GLA monitors the number of new homes against the Mayor’s London Plan target of 30,500 net new homes per annum. Net new homes subtracts demolitions from the gross new build figures, but also adds in new non-self contained homes (such as student halls and hostels) and long term empty homes returned to use. In 2006/7 a total of 31,430 net new homes were delivered in London, made up as follows:
   • 27,290 net new-build homes, of which 9,209 (34%) were affordable
   • 2,695 long-term private sector empty homes brought back into use
   • 1,450 net new non-self contained units in halls and hostels
5. The 31,430 net new homes delivered in 2006/7 is 83% higher than the 17,131 net new homes built in 1999/2000.
6. A total of 9,209 net new-build affordable homes were built in 2006/7. This increases to 11,980 when existing housing converted to affordable homes is also included. This compares with a total of 6,957 in 1999/2000, an increase of 72 per cent.
7. New affordable homes include social rented housing provided by local authorities and housing associations; and ‘intermediate’ homes such as shared ownership or intermediate rent. Existing housing converted to affordable homes includes subsidies to first time buyers to enable them to purchase existing homes, most commonly through forms of shared ownership.
8. Single-year figures for affordable housing supply are subject to fluctuations because some properties are demolished then replaced with the losses calculated in one year and the replacements in another. For this reason the preferred indicator for measuring performance compared to London Plan targets is the percentage of new homes that were affordable over the last three years. On this measure exactly one third of new homes in London were affordable in the three years 2004/05 to 2006/07, divided between 59% social rented homes and 41% intermediate.

PLEASE NOTE: TWO TABLES FOLLOW

1. New homes built in London 2006/07 (gross)

Source: GLA (London Development Database) - All figures from borough returns

Notes:

1. "Gross" new homes is the total number of new self contained homes built in the financial year 2006/7

2. Net new housing supply 2006/07 (including demolitions)

Source: GLA (London Development Database) and CLG - All figures from borough returns

Notes:

1. Conventional supply is new build self-contained housing
2. Non-conventional supply includes vacant homes returned to use, student halls and hostels
3. All figures are net - that is demolitions have been subtracted from new supply
4. Bexley's figure for total housing supply is negative due to a large increase in long-term private sector vacant homes
5. Lewisham and Sutton have negative net affordable housing supply due to a large number of demolished units from previous years being netted against new supply in 2006/7

ENQUIRIES: For more information Richard Brookes in the Mayor's Press office on 020 7983 6550 or email economicdesk@london.gov.uk (Not For Publication)
GENERAL PUBLIC/NON-MEDIA ENQUIRIES: Call the Public Liaison Unit at the Greater London Authority on 020 7983 4100.
DUTY PRESS OFFICER: For out-of-hours media enquiries, please call 020 7983 4000.

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