Affordable Housing in the Draft London Plan – started but by no means finished

Written by Mike Tuffrey and published in Inside Housing on Thu 10th Apr 2003

The Mayor of London says that next year he will meet his affordable housing targets. But does this mean that London's affordable housing crisis will come to an end? No.

The reason lies within Ken Livingstone's own figures. His Housing Commission estimated the need for affordable housing at 25,700 homes per year, yet the target he has set himself in the Draft London Plan is a mere 10,000. Even if this is achieved, demand continues to massively outstrip supply.

This disparity hurts London both economically and socially. Lack of adequate housing is a key supply side constraint on hopes for economic growth and regeneration. The average house price has increased 115% since 1995 to £205,850, 7 times a teacher's average annual pay. Accordingly, London is facing profound recruitment and retention difficulties in key public services.

Socially, the picture is equally severe. Homelessness has increased, with over 52,000 London households in temporary accommodation. Nearly 8,000 households are in bed and breakfast hotels.

To be fair, the situation is improving. The government has begun to give housing the investment it has lacked for a generation, and the Mayor has started to make the most of his limited powers.

However, both have recently missed a trick. The creation of the Regional Housing Board was an opportunity to give London responsibility for the financial resources necessary to make its housing strategy a reality. Instead the government has retained ministerial control. Without this self-determination, the Mayor will continue to be unable to set targets that will truly address the capital's affordable housing problem, and London and Londoners will continue to suffer.