Khan announces “bold solutions”
Mayor of London Sadiq Khan has said that he is “actively exploring” the release of parts of London’s green belt, because “bold solutions” are required to fix London’s housing crisis.
London needs close to one million new homes over the next decade to meet demand, averaging at around 88,000 a year, and Khan has said that the current approach – to build on brownfield land – will be insufficient.
Khan said: “We clearly face an extraordinary challenge. As Mayor, I’m determined to give it everything we’ve got – with a radical step-change in our approach.
“We’ll be working with councils and others to secure as many new homes as we can on brownfield sites, both large and small, but we have to be honest with Londoners that this alone will not be enough to meet our needs.
“That’s why I’m announcing that City Hall’s new position will be to actively explore the release of parts of London’s green belt for development.
“The perception many people have is that the green belt is all beautiful countryside, green and pleasant land, rich with wildlife. The reality is very different. The green belt can often be low-quality land, poorly maintained and rarely enjoyed by Londoners. Only around 13 per cent is made up of parks and areas that the public can access.
“So given the quality of parts of the London’s green belt and the extent of the housing crisis, I believe the status quo is wrong, out-of-date and simply unsustainable. Development on carefully chosen parts of the green belt – done in the right way – would allow us to unlock hundreds of thousands of good quality new homes for Londoners. This would not only go a long way to ending the housing crisis but provide a huge boost to our economy.”
Slight rise in house prices during April
The latest house price index from Halifax has revealed a 0.3% increase in property values during April, versus -0.5% in March.
The average property price is now £297,781 – an increase of around £882 in the month.
The annual rate of house price growth is 3.2%, up from 2.9% in March.
Northern Ireland, Wales and Scotland recorded the strongest annual growth in house prices in the UK, at 8.1%, 4.7% and 4.6% respectively.
London continues to see more subdued annual house price growth of 1.3%
Meanwhile, research by the Home Builders Federation has found that only the top 30% of earners are able to buy a home due to rising house prices, mortgage costs, and lack of government support.
The report, Broken Ladder: Stairway to Never, has found that homeownership is unaffordable for hundreds of thousands of potential buyers.
Home ownership in England sits at just under 65%, compared to a peak of 71% in 2003.
The report also found that in 2022, when Help to Buy ended, a typical two-income household needed to earn around £25,000 per person to afford a new-build home, which at the time cost around £300,000.
Now, dual income households each require incomes of more than £37,000.
HBF ceo Neil Jefferson said: “The lack of affordable mortgage availability and support for buyers has created a significant barrier, between aspiring homeowners and their first step onto the ladder. For many, in particular young people, homeownership is no longer just difficult; it is impossible without support.
“Government urgently needs to intervene and support buyers by establishing a new, fair and targeted scheme to restore affordability and access to homeownership.
“Supporting buyers would not only provide a new generation with the benefits homeownership brings, but it would also directly lead to an increase in home building, creating jobs and boosting economies across the country.”
Construction activity declines for fourth successive month
UK construction output decreased for the fourth successive month in April, according to the latest S&P Global Purchasing Manager’s Index (PMI).
The PMI registered at 46.6 in April, remaining below the 50.0 no-change value. However, it was up slightly from March’s reading of 46.4.
Housebuilding remains in decline, albeit the sector’s reading of 47.1 is the highest value in 2025 so far.
Survey respondents typically commented on the impact of subdued business and consumer confidence.
In other news…
An assessment by the Ministry of Housing, Communities and Local Government (MHCLG) has found that the Planning and Infrastructure Bill is set to boost the economy by up to £7.5bn over the next decade.
MHCLG said lower costs for businesses, fewer delays and “more certainty” through the bill’s measures could promote further investment and “provide an additional boost to the economy”.
It added that the economy-boost estimation was likely to be an “underestimate” as it did not include recent amendments to the bill, including to overhaul the pre-application stage for critical infrastructure.
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The Home Builders Federation (HBF) has appointed a Director of Industry Attraction and Skills.
Andy George, who has joined from Barratt Redrow, has worked alongside the HBF for a number of years to drive collaboration and attraction activity across the housebuilding sector.
Housing View 