Soundbites won’t solve London’s housing shortage

Another day, another bid to unpick the Gordian knot that is the housing shortage in London.

Today Housing Secretary Michael Gove unveiled his own plans to unleash a “housebuilding boom” in the capital, a prize that has eluded three Mayors and umpteen holders of one of the least secure ministerial jobs in Whitehall.

Today’s soundbites are all well and good and certainly an overhaul of the moribund planning system would be a valuable — if scarcely votegarnering — achievement.

But on the ground in London the signs are not encouraging. The latest quarterly report from analyst Molior, one of the most reliable indicators of what is really going on, reveals that a record 70 schemes in London are currently stalled. Reasons range from contractors falling into administration, to delayed signoff on fire safety compliance, to unfavourable market conditions.

Sales at major schemes with more than 12 units were just above 3000 during the three months to July, lower than even the worst quarter during the pandemic. Developers, who deliver about three-quarters of London’s new housing, are in gloomy mood.

Registrations of new buyers are down by about a third this year as caution becomes the dominant driver of behaviour in the market.

With housing it is right ministers are focusing on London — but they need a thriving private sector to deliver the “boom” they promise the electorate, as well as genuine co-operation between City Hall and Whitehall.

For now at least the outlook for solving this most complex and vital of challenges does not look good, whatever Gove’s warm words.