Skip Ribbon Commands
Skip to main content

News Release

London

Regardless of who wins today’s election, the main priority of the Mayor and the Greater London Authority should be the capital’s growing housing crisis

Say Jones Lang LaSalle on the day of the London Mayoral elections


Jon Neale, Residential Research director at Jones Lang LaSalle comments on today’s election and the current housing crisis in London:

“Regardless of who wins today’s vote the main priority of the Mayor and the Greater London Authority should be the capital’s growing housing crisis. With homes costing almost ten times the median salary – a figure that has actually increased since the financial crisis – and first-time buyers needing deposits of as much as £100,000 to secure a typical mortgage, London desperately needs far more homes of every type. With 350,000 households on the waiting list, there is clearly a vast unmet need for affordable homes – but that should not obscure the point that only by providing far more market homes can we relieve the affordability problem and help more Londoners meet their clear aspiration to own their own home. There will be around 750,000 more households in London by 2031 and this huge extra demand for new homes can only really be tackled by market forces.”

“The new Mayor needs to look to using the GLA’s landholdings more productively, to streamlining the planning system for residential development, and above all, to helping to promote institutional investment in the private rented sector. With mortgages in short supply and public spending on housing under pressure, new sources of funding must be found to help get housing built. The Private Rented Sector has grown rapidly in London in recent years. It is estimated that around a quarter of London households now rent from private landlords, up from just 15% in 2000. For many young households, families included, it has become the norm, with the number of children in the sector growing quickly over recent years. Yet as a result of supply shortages, rents in London have grown by up to 10% over the past year, and it is estimated that a family needs to earn almost £60,000 per year to afford a typical London rent. It is vital than more good quality private rented homes are provided – triggering the involvement of pension funds and other equity investors would help achieve this while improving the overall supply of homes and stimulating the capital’s construction sector.”