New London Mayor housing impact

Sadiq Khan’s victory on the future of London housing


The new London Mayor Sadiq Khan has pledge to make London “Better” after beating Zac Goldsmith 1,310,143 votes to 994,614 and had vowed “the most transparent, engaged and accessible administration London has ever seen”.

Khan said: “My burning ambition for our city, that will guide my mayoralty, is to ensure that all Londoners get the opportunities that my city gave to me.”

“I promise you I will always do everything in my power to make our city better. I will be a mayor for all Londoners,” he added.

Affordable housing

The new mayor has stated he wants more affordable housing with Londoners having first dibs on new homes.

“Housing is top of the agenda and London will watch with eager anticipation to see if Khan can deliver 50,000 homes per annum and we will help him try to get there. Khan’s focus on affordability was a popular vote winner but the real test will be the delivery of these homes at a time when the capacity and cost of construction industry is so testing,” said Guy Grainger UK CEO at JLL.

Stop foreign investors

The mayors goal is to stop foreign investors buying up london.

Adam Challis, Head of JLL Residential Research, points out that the housebuilding industry is already signed up to the mayor’s ‘London first’ concordat for sales, which commits to give Londoners first option on new homes in the capital.

He said: “Ultimately domestic demand is not strong enough to drive off plan sales rates, so the issue here is that action to restrict overseas investors would simply destroy the viability of most schemes, and would reduce, not increase, the level of affordable housing delivery. We should remember that Ken Livingstone had this aim and never got close to implementing it.”

Adam Challis, Head of JLL Residential Research, points out that the housebuilding industry is already signed up to the mayor’s ‘London first’ concordat for sales, which commits to give Londoners first option on new homes in the capital.

London Living Rent

Kahn wants to introduce a London Living Rent that will be capped at one third of local tenants’ average income.

Franki Chaffin-Edwards of the TheHouseShop commented: “His promise to introduce a London Living Rent capped at one third of local tenants’ income which deserves most attention.

“The rent-to-income gap has grown so large in London that what sounds like a reasonable policy will actually require huge discounts above and beyond the existing 20% discount for “affordable” homes, and many in the industry have serious doubts about the viability of this particular policy.

“The capital’s private landlords are also feeling the pressure as the new Mayor brings renewed focus to the issues in the market. Landlords are already feeling targeted by the Conservative government and we believe that many landlords are looking for reassurance from Mr Khan that their interests are just as valuable as those of the tenants. We speak to private landlords every day and there is definitely a feeling of uncertainty about what the future holds for the market.”

Written by: Houseladder