Plans in place for more than 400,000 new homes in London

Plans in place for more than 400,000 new homes in London

One of the factors that has kept the price of property in London rising far faster than the national average in recent years has been the supply and demand issue, with far more people looking to buy or rent than stock coming to the market. 

It saw property prices in the capital rising by almost 12 per cent in 2014, more than double the rate of growth seen across the nation as a whole. However, chancellor of the exchequer George Osborne has unveiled a new plan that would help the city meet its need for new homes, assisting the market in reaching a more stable maturity in turn. 

Mr Osborne said that London needs to be creating more than 400,000 new homes to meet demand, mostly born out of the creation of new households in the capital, from both people moving out of the parental home and new residents coming into the city for work. 

One of the major changes that will help London achieve this goal of creating enough new homes is the creation of the London Land Commission. For many years, it has been said that there is copious amounts of land available in the capital for construction that is simply not being used. 

The job of the new Commission will be to identify areas of brownfield land across the capital that can be converted and used for the construction of new homes. It will mean it can meet the target of building more than 400,000 new homes within the next decade. 

On top of this new plan, the chancellor and the mayor of London Boris Johnson have also announced the creation of nine new housing zones across the capital. These will be at Greenwich, Bexley, Barking and Dagenham, Wandsworth, Harrow, Hounslow, Lewisham, Ealing and Haringey, and will have funding set aside to assist with the creation of new affordable housing.

"We face massive demographic pressures in our city and it is absolutely vital that we build the high quality stock of housing we need to cope. We will not solve the problem without massively expanding the supply of housing and the plans confirmed today will help do that, which is fantastic for our city," Mr Johnson said.