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Housebuilding in London 94% below target

Fahad Redha

April 23, 2026
2 min read

Housebuilding in London 94% below target

London’s housebuilding has fallen below targets as figures reveal that it is around 94% below the capital’s target. Figures from the industry, as well as developers, are warning that it falls well below the demand, with 5,891 reportedly started in 2025.

This, according to those in the industry, reflects a structural breakdown as opposed to a cyclical slowdown, Homebuilding.co.uk reports, adding that one industry voice called the housebuilding situation a “systemic failure.”

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A combination of “weak demand, regulatory friction, and viability constraints,” the website reports, is often said to be the “core driver” of the fall in housebuilding numbers in London. Senior members of the construction industry, as well policy figures, are issuing “stark warnings” about the capital’s slowdown in home construction.

“London housebuilding has collapsed,” Saul Humphrey, Senior Vice President at the Chartered Institute of Building said. “Not slowed. Not softened. Collapsed.” The reported 5,891 houses started in 2025, he added, represent a 94% fall compared with targets, saying that it “isn’t a demand problem,” but instead, “a systemic failure.”

The issue, according to his analysis, is more structural, with projects not proceeding because they no longer financially “stack up.” This results in supply stalling, putting pressure on affordability in the capital.

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About Author

Fahad Redha

Fahad is the Content Editor at EyeOnLondon, overseeing the publication’s editorial output across news, culture, and lifestyle. With a background in journalism from the University of the Creative Arts, he brings a broad range of experience from local London reporting in Kensington & Chelsea, where he held roles including motoring, events, and health editor. At EyeOnLondon, Fahad plays a central role in shaping content and maintaining editorial standards. His work spans everything from daily news to feature coverage, with a particular strength in motoring and events. He also incorporates photography into his reporting, adding a visual layer to many of his stories. Fahad joined EyeOnLondon in February 2021.