Developers across London are stepping back from building leasehold flats and shifting towards other models, the London Assembly has been told — a change that could reshape what gets built in boroughs like Waltham Forest.
Luke Ward, of Barnet Council, told the Assembly that developers are moving away from leasehold flats in favour of build-to-rent, co-living, student housing and sheltered accommodation.
He pointed to two problems pushing them in that direction. The first is affordability: leasehold flats are simply out of reach for many first-time buyers. The second is what he described as the tenure's "reputational challenges", including concerns over cladding works and service charges.
Those charges are substantial. Recent figures show the median London household pays £3,912 a year in service charges, and leasehold accounts for more than a third of the capital's housing stock, at 36.1%.
Housing activist Harry Scoffin said "developers and councils are admitting the leasehold flat market has collapsed and is warping housebuilding priorities".
The picture on the supply side is no easier. Construction costs remain at record highs, driven by rising material prices, interest rates and labour shortages.
The mayor's Affordable Homes Programme also fell short of its targets, delivering 14,335 starts against a goal of 17,800 in the period to March.
Research from the Centre for Cities suggests London will lag behind other regions in clearing its housing waiting lists, with affordable homes built amounting to only 18% of priority waiting lists by 2036.
