Written by Adam McLaren, Director of Client Services
As the national conversation develops around how to deliver 1.5 million homes, one thing is clear: London’s role is critical. Backing the capital to build is not just about meeting local housing need. It’s about driving national growth, supporting the UK’s global competitiveness, and ensuring that young people and key workers can thrive in the capital. Despite growing confidence in the industry, continued attention from Government is crucial to maximise London’s potential.
At this year’s UKREiiF, Kanda has engaged with leaders from across the built environment sector. The industry is rightly focused on delivery, considering how to capitalise on the green shoots of growth. The ambition is there for London to make a serious contribution to housing numbers, but challenges remain if we are to convert this ambition into housing starts.
Unlocking Capacity through Regeneration
London’s land is constrained, but its potential is not. Borough-led regeneration schemes, estate densification, and mixed-use developments all offer major opportunities to deliver new homes, particularly affordable ones, within existing communities. Despite some creative solutions across the industry, many sites have yet to be unlocked.
The Mayor’s recent openness to reviewing Green Belt signals a pragmatic shift in City Hall. If done well, with strong design standards, transport links, and community engagement, it could help unlock thousands of homes in sustainable locations not previously on the target list.
Labour’s first year has seen several welcome interventions on planning, but momentum needs to keep pace. The Government will be working with the GLA and boroughs to streamline planning and de-risk complex regeneration sites, particularly in the outer boroughs where untapped capacity exists.
Infrastructure as the Enabler
No housing strategy in London can succeed without infrastructure. The long-awaited Bakerloo Line Extension is a case in point. It has the potential to unlock over 100,000 new homes across Southeast London, yet it remains without a long-term funding solution.
More broadly, long-term financial certainty for Transport for London is essential, not just to keep the network running, but to enable the capital’s housing growth to be well-connected and economically viable.
Infrastructure and housing in London are inextricably linked. As the Government works through its spending priorities, it will need to be nimble in exploring partnership models with the private sector that can unlock this.
The Funding Gap
London’s capacity to deliver new homes at scale will also depend on funding certainty, especially for social and affordable housing. Boroughs and housing associations are pushing for predictable, multi-year grant settlements to plan effectively and revive a sustainable pipeline of planning projects. This includes estate regeneration schemes that can significantly increase housing supply while improving conditions for existing communities.
The London Engine
After last year’s UKREIIF was dominated by the surprise of the General Election being called in the middle of the conference, this year has been all about the impact of that Election on the industry. Everyone in Leeds agrees that London is central to unlocking the Government’s housing ambitions. Progress since the Election is encouraging, but Government and the industry must continue to work together thoughtfully on the connections between regeneration, infrastructure and funding.
The Kanda Consulting team is active in every London borough and is at the heart of conversations about enabling growth in London. If you would like to speak to us about how we could support you with navigating these conversations, get in touch with the Kanda team at info@kandaconsulting.co.uk.
