The proportion of social housing units provided in inner London has fallen to its lowest level in more than a decade, according to new analysis.
There are currently 158,921 homes in planning, under construction, or completed within the last year in London’s inner 11 boroughs. Just 24.8% of these are classified as affordable. This compares with 32.7% at the start of former London mayor Boris Johnson’s second tenure in 2011, and 40.4% in 2005.
According to EGi’s London Residential Research, of the 11,786 units completed in inner London last year, just 28.9% were classified as social, which, after the 28.6% in 2014, is the second-lowest year in more than a decade.
London mayor Sadiq Khan has pledged to make 50% of new homes in London affordable, but the figures show he will have his work cut out. At no point since 2004 has the affordable housing number risen above 50%.
However, the numbers hide discrepancies. While affordable homes are down as a percentage of units built, the numbers are relatively steady, hovering around the 3,500 mark.
They also do not include social housing payments through Section 106 contributions, which could add additional affordable units.
There is considerable disparity between the London boroughs too. Just 15.3% of completions last year in Wandsworth were affordable, and only 19% in Westminster. This compares with a high of 48.3% in Lambeth and 39.6% in Islington, the former council of the new deputy mayor for housing, James Murray.
“Inner London’s affordable housing numbers have flatlined,” said Nigel Evans, head of EGi London Residential Research, “despite the number of homes overall being built reaching a seven-year high.
“The question we have to ask ourselves is, have the commuted payments incurred by the rise in private starts increased enough to make up the shortfall in the number of affordable homes being built?”
Previous Estates Gazette research shows that the 11 inner London boroughs were pledged around £800m in commuted payments over the past five years, although Westminster and Southwark accounted for half of this.
However, London boroughs can run into considerable difficulties spending these contributions, owing to a lack of resources and opportunities to spend the money within their boundaries.
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