London sees largest decline in affordable housing delivery

Research by London lettings and estate agent, Benham and Reeves, has shown that whilst the government has stated its intent to invest an additional £2bn into social and affordable housing, they face an uphill battle, as the number of affordable homes delivered to market has declined by 2.4% on an annual basis – equating to over 1,500 fewer affordable homes reaching the market.

Benham and Reeves analysed the latest figures on affordable housing delivery and how it has changed across England.

The analysis shows that in 2023/24, some 62,289 affordable homes were delivered across England, marking a -2.4% reduction on the previous year – equating to 1,533 fewer affordable homes.

The vast majority of these affordable homes were delivered across the shared ownership and affordable rental sectors, accounting for a respective 20,364 and 24,155 homes delivered.

Affordable first homes saw the lowest level of delivery with just 614 units making it to market.

Whilst London saw the greatest number of affordable homes make it to market (12,611), the capital also saw the most drastic year on year reduction with a drop of 20%.

Across the South West, the number of affordable homes reaching the market fell by -15.5%, whilst the South East also saw a reduction of -6.3% despite seeing the second largest overall total of 10,619.

The good news is that across the remaining regions of England, affordable home delivery has increased on an annual basis.

Yorkshire and the Humber saw the largest boost in affordable housing stock, up 25.6% year on year, with the East Midlands (18.8%) and West Midlands (12.9%) also seeing double-digit growth.

Director of Benham and Reeves, Marc von Grundherr, commented

“Homebuyers have been contending with the high cost of homeownership for far too long and so it’s reassuring to see the current government not only commit to building more homes, but to boosting the delivery of affordable housing stock.

Of course, promises and actions are two very different things indeed and it remains to be seen as to whether Labour will actually come good and put in the hard yards required to solve the housing crisis.

It’s fair to say they face an uphill battle, as those regions with the highest house prices are the ones to have seen the largest slump in affordable housing delivery and this is a trend that needs to be reversed if we’re going to turn the tide.”