The housing minister stands by the target despite a recent decline in construction activity across London
London: So, the housing minister is really backing this goal of building 88,000 new homes each year in London. It’s a big deal for the new Labour government, which wants to create 1.5 million homes in five years. They’re pushing for some changes in the planning system to make it happen.
But here’s the kicker: a recent survey showed that housebuilding dropped in December, and it’s the biggest decline since June. Some folks think the weather might have played a part in that.
London’s been struggling with a housing shortage for ages, which has made property prices skyrocket and rents go through the roof. During a recent debate in the Lords, Baroness Taylor faced some tough questions about why the target for London was cut by about 10,000 homes.
Baroness Scott of Bybrook, the shadow housing minister, pointed out that affordable homes should be built where they’re really needed, like near jobs and public transport. She asked why London’s target was lowered while some rural areas saw huge increases.
In response, Baroness Taylor explained that the new method aims to balance the need across the country while focusing on areas with the most affordability issues. She insisted that the target for London is still significant, being more than double what’s been built recently.
Meanwhile, the construction industry in the UK is feeling the pinch, with growth slowing to its lowest rate in six months. The latest index showed a drop in activity, which isn’t great news for housebuilders.
Residential work is the only area that’s really taken a hit, with housebuilding slowing down the most. Builders are facing weaker demand, partly due to shaky consumer confidence and high borrowing costs, even with some recent interest rate cuts.
Tim Moore from S&P Global mentioned that worries about future demand are affecting growth expectations for the construction sector. Even though confidence bounced back a bit after the Budget, it’s still not as strong as it was earlier in the year.
