London Assembly likely to abandoned house-building plan - 13th Oct 2008

London Mayor Boris Johnson promised that he would build 50, 000 affordable homes in London by 2011. It emerged today that this plan might not go ahead.

During the questioning of “experts” in the housing market, London Assembly’s Planning and Housing Committee was told that it would not be feasible to build these new homes because of falling house prices.

In a statement, London Assembly said, “While home ownership remains a long-term aspiration, almost all the guests agreed that until people are once again able to get mortgages in significant numbers, the Mayor’s £4 billion for affordable housing would be best spent on the provision of social rented housing”.

Planning and Housing Committee will feed its findings to the Mayor’s forthcoming draft housing strategy, due for publication in November.

If these homes are not built, this will be a blow to thousands of first time buyers in London, who, despite the recent price drops, are still cannot afford properties in London.