London sitting on 160,000 unbuilt approved homes
Key Points
- 159,923 approved homes in London Opportunity Areas remain unbuilt
- 88,838 homes are on stalled or paused sites
- 71,085 consented homes have not started construction
- London's housing target rises to 88,000 homes a year
- 67% of London's consented homes sit in Opportunity Areas
Nearly 160,000 homes in London’s designated growth areas have planning approval but remain unbuilt, according to new analysis by BusinessLDN and planning consultancy Quod.
The report, published ahead of the Greater London Authority’s forthcoming draft London Plan, found that 88,838 homes sit on sites where development has commenced but has since stalled, paused between phases, or is awaiting future phases.
A further 71,085 homes are on consented sites where construction has not yet started, with the report warning delivery of these may be at risk.
The combined figure of 159,923 unbuilt homes dwarfs the 52,930 homes currently under construction across the capital’s 48 Opportunity Areas, the locations identified in the London Plan as having significant capacity for new homes and jobs.
Another 25,435 homes were granted permission in the past year and are expected to start shortly, while 62,604 remain in the planning system.
The blockage comes as housing starts in London sit at an all-time low and the capital’s housebuilding target is set to rise to 88,000 homes a year under the new London Plan, up from 52,000 in the 2021 version.
For renters and buyers, the gap between approved and delivered homes is a key driver of constrained supply, with the shortfall feeding through to higher rents and prices across the capital.
Opportunity Areas have delivered 103,184 homes since 2019, leaving remaining capacity for 368,416 homes against the 2021 London Plan’s assumptions. However, the analysis identified 102,101 homes within the areas that are not yet reflected in the pipeline at all, meaning they have no defined route to being built.
Over the past five years, Opportunity Areas have averaged 16,228 new homes a year. To maintain their one-third share of London’s housing delivery under the new 88,000-a-year target, that output would need to nearly double to 29,917 homes annually.
The report recommends that reform of Opportunity Area policy should focus on accelerating construction on stalled and unstarted sites, alongside unlocking the homes not yet in the pipeline. Some 67% of all consented homes in London, around 301,000 in total, are located within Opportunity Areas.
The GLA is expected to publish the draft London Plan for public consultation shortly.
