In a recent joint statement the Chancellor and the Mayor of London confirmed London’s new “Housing Zones” in which more than 400,000 new homes can be built by 2025, but following yesterday's budget it's clear they’re a little sketchy on how these houses will be built!


As part of the economic plan for London an agency known as the London Land Commission was established to start dealing with the capital’s chronic housing shortage. Part of the solution to this is to create nine “Housing Zones” where large number of new homes will be built, however it’s now important that the house builders and construction supplies firms in the construction industry are brought into the fold to ensure the goal of 400,000 new homes by 2025 is achieved.


The role of the London Land Commission is to support London by making sure the construction of these homes takes place; they’ll do this by identifying areas of publically owned land in London that can be developed. Effectively they’ll have to develop 100% of the brownfield capacity in London to hit their target.


One key area that has to be dealt with is the construction industry itself, we’re seeing a huge lack of resources and ever increasing costs of building supplies as demand outstretches the ability of the construction industry to supply.


In the recent report Skills to Build, the London Chamber of Commerce argued that at least 20% more construction workers will be required by 2017 to meet the existing construction pipeline. Training of construction apprentices is going to help but it won’t help hit this deadline anytime soon so the existing pipeline will continue to back up.


Possibly an even bigger problem with the delivery of 400,000 new homes is the lack of clarity about the type of homes that need to be built. This needs an overarching strategic plan which appears to be lacking. A big percentage is going to need to be affordable or low rent housing to keep London inhabited by the lower income workers and small business owners who are key to keeping London functioning as a city, and who are key to its growth.


The government and the Mayor of London need to work closely with the construction industry to start making this target a reality, if they don’t it’s unlikely the number or the right kinds of homes will be built for our vibrant and dynamic, and ever expanding capital.