Soaring construction costs are exacerbating London’s housing crisis, according to independent think tank Centre for London (CfL).
London’s housing crisis continues to escalate. The government wants to see 88,000 new homes built in the capital every year until 2030, but CfL’s analysis reveals that this will become increasingly challenging.
It has revealed that the upfront cost to developers of constructing these new homes will be at least £2.2bn.
That is roughly 43 times higher than the equivalent target in the West Midlands (£50.6m), and 36 times higher than in Greater Manchester (£61.3m).
This estimate was reached by combining the costs associated with the Building Safety Levy, section 106 agreements, the Community Infrastructure Levy and planning fees for local councils.
It also found that 60% of Londoners whose housing costs have increased in the last 12 months said they have considered moving out of the capital.
This data was shared at the London Housing Summit 2025 this week, at which...