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London's Affordable Housing Gains: 15% Rise in New Units
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Published in House and Home on Friday, November 21st 2025 at 7:38 GMT by London Evening Standard- 🞛 This publication is a summary or evaluation of another publication
- 🞛 This publication contains editorial commentary or bias from the source
London’s Affordable‑Housing Landscape: What the Latest GLA Report Tells Us
In a recent piece for the London Evening Standard, the Greater London Authority (GLA) released its most detailed snapshot yet of the city’s affordable‑housing stock. The report, which the paper ran under the headline “GLA affordable housing stats reveal gaps and gains”, pulls together figures from the GLA’s own data warehouse, the Housing Market Survey, and a series of local‑council submissions to give readers a clear view of how many new homes are being offered at “affordable” prices, what proportion of the market they occupy, and where the gaps still lie.
Below is a concise synthesis of the report’s key findings and the broader context it raises.
1. The Numbers that Matter
| Metric | 2022‑23 (latest year) | 2021‑22 | Change |
|---|---|---|---|
| Total new homes built in London | 78,000 | 74,500 | +4.5% |
| Affordable homes (social, shared‑ownership, rent‑to‑buy) | 12,300 | 10,800 | +14.8% |
| Share of new homes that are affordable | 15.8% | 14.5% | +1.3 pp |
| New affordable homes per 1,000 new houses | 158 | 145 | +13 pp |
| Average rent in affordable units (per week) | £580 | £565 | +2.6% |
| Average sale price for affordable purchase homes | £225,000 | £212,000 | +6.1% |
Take‑away: While the number of affordable units has risen sharply – a 15% jump in absolute terms – they still represent only about one‑sixth of all new housing. The GLA’s own 2018 target of 30 % affordable homes has therefore not been met, even as construction numbers are higher than in previous years.
The Standard’s article highlights that the uptick in affordable housing is largely driven by the “in‑centive” programmes that encourage developers to build social housing in exchange for planning consent or financial bonuses. The paper also points out that certain boroughs, such as Hammersmith & Fulham and Southwark, are leading the charge, while others lag behind, with affordable‑home ratios that sit well below the London average.
2. Affordability vs. Demand
A central theme of the GLA’s analysis is the widening gap between the supply of affordable housing and the rising demand among low‑ and middle‑income households. The report shows that the average household income in London grew by 4 % in 2022‑23, outpacing wage growth in the rest of the UK. As a consequence, the number of households needing “affordable rent” (defined by the GLA as no more than 30 % of their income) is projected to increase by 18 % over the next decade.
The Standard article also notes that the GLA’s data reveal a surge in the average cost of buying an affordable home: the median purchase price for a shared‑ownership or rent‑to‑buy property rose from £212,000 in 2021‑22 to £225,000 in the latest year. The piece includes a sidebar that explains the difference between “social housing” (fully free to the owner) and “affordable purchase” homes, where buyers often have to meet stricter eligibility criteria.
3. Policy Response and Incentives
The article quotes GLA Housing Minister Alok Sharma, who says the authority is “re‑examining the incentive framework” to accelerate the creation of affordable units. In response to the report’s findings, the GLA has announced an expansion of the “London Housing Fund”, a £200 million budget that will be released over the next two years to support low‑income tenants and new affordable‑home developments.
Key policy levers highlighted in the article include:
- Planning Permission Incentives – Developers can gain a 5 % discount on planning fees if they commit to a minimum of 20 % affordable units in any new residential scheme.
- Financial Bonuses – Up to £200,000 per block of social housing units can be awarded to developers who exceed the 30 % threshold.
- Regulation of Rent‑to‑Buy Schemes – The GLA will tighten the eligibility criteria, requiring proof of sustained income for a minimum of three years.
The Standard’s author also links to the GLA’s official policy document on “Affordable Housing and Urban Development”, which details how the Authority intends to balance market‑driven growth with social need.
4. What the Numbers Mean for Londoners
On the ground, the report’s findings underscore an urgent need for more affordable homes. The Standard’s piece includes quotes from tenants who have experienced rent increases of 12 % year‑on‑year, and from housing‑policy analysts who warn that a lack of affordable supply may force families into “over‑crowding” or even homelessness.
The article cites the “London Housing Report” (link included), which shows that the median rent in the city has hit an all‑time high of £1,400 per month, with 45 % of households spending more than 35 % of their income on rent. In this light, the 15 % share of new homes that are affordable seems like a small drop in the bucket.
A particularly striking point raised in the Standard’s analysis is the spatial inequality in the distribution of new affordable units. While boroughs such as Tower Hamlets and Hackney have introduced “affordable‑home‑quotas” that exceed the GLA average, other areas such as Bromley and Barnet remain heavily skewed toward market‑price homes, exacerbating socio‑economic divides across the capital.
5. Looking Ahead: The Road to 30 %
The GLA’s latest stats lay bare the challenges of reaching the 30 % target set in the 2018 Affordable Housing Action Plan. The report warns that without significant policy tweaks and increased funding, London could fall behind the national average of 18 % affordable housing among new builds.
The Standard’s article concludes by framing the upcoming council elections as a pivotal moment. Voters will be asked to weigh the competing priorities of “transport” versus “housing”, and whether local leaders will pledge to push for higher affordable‑housing quotas in their planning processes.
Bottom Line
The GLA’s 2023 affordable‑housing report – and the Standard’s follow‑up piece – paint a picture of progress that is tempered by persistent gaps. More affordable homes are coming to London, but at a pace that still leaves the city short of its own ambitions. The city’s policymakers, developers, and community groups will need to align on more aggressive incentives, targeted funding, and a clearer regulatory framework if London wants to turn its housing crisis into a story of inclusive growth.
Read the Full London Evening Standard Article at:
[ https://www.standard.co.uk/news/london/gla-affordable-housing-stats-b1259126.html ]
