London new homes supply at 20-year low

Fewer new build homes in London were constructed in 2009 than at any time in the last 20 years, according to statistics released by the government.

The data shows that building work got underway on fewer than 11,500 new homes in London last year, despite London mayor Boris Johnson's pledge to deliver 50,000 affordable homes in London by 2012.

Despite the 20-year low in housebuilding level in the capital, the mayor's housing advisor Richard Blakeway insists that the target will still be met, despite a growing number of sceptics.

Blakeway commented: "We are on track to deliver the 50,000 affordable homes.

"We are improving the design standards for homes so they are a better quality home."

However, Dino Patel, London regional manager at the National Housing Federation, suspects that the target will not be met.

He said: "The global financial crisis and resulting recession have created a very difficult environment for developers.

"The government is intending to make huge cuts in every department including the communities and local government.

"We are urging the government to make sure that they do not make huge cuts because I think it will have a detrimental impact on future house building in London and the waiting lists will continue to grow."

Marc Da Silva, editor of What House?, comments: "Despite former London mayor Ken Livingstone's faults, he possessed a much more austere approach to ensuring that housebuilding targets were met, in comparison to Boris Johnson.

"I suspect that Johnson's lax approach to housebuilding targets and pending failure to increase the supply of new and affordable homes in London will be mirrored by the Conservative-led coalition government, who will ultimately fail to improve housing supply in this country. This is partly due to its decision to scrap UK housebuilding targets."