New research from the Centre for British Progress (CBP) says that meeting national housebuilding targets could cut average London rents by £251 a month. Waltham Forest residents would save £184 a month.
The government has committed to building 1.5 million homes across the country between July 2024 and the next election in 2029, including 88,000 homes a year in London. Ministers have acknowledged there is only a "slim chance" of reaching that target, and Sir Sadiq Khan's London Plan suggests that only 55,800 homes a year can be built over the next decade, even in favourable conditions.
The research argues that more housing brings prices down through moving chains: people move into new-build homes, which frees up older, cheaper homes for lower-income households. Between 2000 and 2019, London's population grew by 1,653,000, but only enough housing was added for 1,387,000 people.
According to the report, meeting the targets would grow London's housing stock by 2.3% a year and cut rents by 9.7% over five years. For a typical two-bedroom flat in inner London, that would mean £251 a month less by year five than at current building levels.
The estimated savings vary by borough, from £163 a month in Bexley to £367 in Kensington and Chelsea. Waltham Forest's figure is £184.
The report also suggests that if just 10% of new homes were social housing, the number of London households in temporary accommodation could fall by up to 59%, saving councils £435 million a year.
Co-author Rob Blackie, the Liberal Democrat candidate for the 2028 London mayoral election, said: "London's rents are far too high, because our Mayors have failed to build enough homes for the last 25 years."
Fellow co-author David Lawrence said: "Building more homes would boost growth as workers can be near good jobs. It can also be done for free – by streamlining planning constraints."
