London Housing Crisis Worsens as 42,000 Planned Homes Are Abandoned
- brg_news_room
- 10 hours ago
- 1 min read
UNITED KINGDOM: London’s housing shortage has deepened after developers scrapped or repurposed plans for at least 42,000 homes over the past three years, according to industry analysis. Of these, around 30,000 had already received planning permission, while 12,000 were part of local development plans. Many of these sites are now being converted into warehouses, data centres, self-storage facilities and hotels instead of residential use.
The slowdown is driven by high construction costs, strict regulations, elevated interest rates and weak buyer demand, making housing projects financially unviable. Annual approvals have also fallen sharply to about 20,000 homes, far below the 88,000-unit target. The situation poses a major challenge for housing delivery under Mayor Sadiq Khan, despite recent policy measures aimed at improving project viability and encouraging new construction.
Source: The Telegraph
