Has London’s housing market slumped under Sadiq?
The latest research by property development appraisal software, APRAO, has revealed that since Sadiq Khan became the Mayor of London, the capital has seen the second largest number of new homes delivered of all English regions. However, when compared to the same time period prior to his election, London has seen by far the smallest increase in new housing stock reaching the market, as well as the lowest rate of house price growth.
APRAO analysed the delivery of new homes in London since 2016/17 when Sadiq Khan first became Mayor of London, as well as the number of new homes delivered during the same time period prior to his election*.
The analysis by APRAO shows that 147,490 new homes have been built across London during Sadiq Khan’s tenure as mayor. This is the second highest volume of new homes delivered, with just the South East seeing a larger number at 210,130.
However, while London may have seen a substantial volume of new homes built since Sadiq Khan became mayor, the analysis by APRAO shows London housebuilders have taken their foot of the pedal when it comes to the uplift in delivery under Sadiq.
The 147,490 new homes built across London since 2016/17 marks just a 9.4% increase versus the same time period prior to Khan’s election (2009/10 to 2015/16).
This is by far the smallest uplift in new home delivery of all English regions. While the South West is home to the second smallest increase, the level of new homes delivered since 2016/17 sits 22.9% above the same time period prior (2009/10 to 2016/16).
In contrast, 73% more homes have been built across the North West since Sadiq Khan was made Mayor of London versus the same period prior to his original election.
Additional analysis by APRAO shows that since Sadiq Khan was first elected in May 2016, the average house price across England has increased by 31.5%. However, the London market has seen an increase of just 7.5% during the same period.
This is also the lowest rate of growth of all regions of England, with the North West topping the table with a 44.8% increase in the average house price.
CEO of APRAO, Daniel Norman, commented:
“Regardless of your political allegiances, there’s no disputing the fact that the London property market has slumped somewhat since Sadiq Khan became mayor, both with respect to house price growth and the increased delivery of new homes.
Yes, London may have seen the second highest number of new homes delivered during this time, but it’s also important to note that the requirement for new homes within London and the South East is far greater due to larger population sizes.
It’s clear that with the London property market struggling to the greatest extent with respect to house price growth, the capital’s developers simply haven’t had the confidence to keep their foot on the pedal. As a result, London has seen the lowest increase in new homes built versus the same period prior to Sadiq Khan’s initial election.
However, the reality is that the growing issue of London’s housing crisis isn’t down to one person or one political party. It’s a serious issue that requires a long term plan to resolve and this unfortunately doesn’t fit with the relatively short life span of a political career – Even if that career does stretch over three terms.
Time and time again we’ve seen housing related issues receive the cold shoulder as those in government are only focussed on short term wins to aid re-election. God forbid they implement any meaningful solution as by the time such an initiative starts to bear fruit, they would no longer be around to claim the success.”
