The London mayor election has started but who is on track to win the race and how will this affect housebuilding?

It appears that the red car and the blue car will be racing each other to the finish line, with Zac Goldsmith behind the steering wheel for the blues (Conservatives) and Sadiq Khan battling it out for the reds (Labour).

With the number of households in London set to increase from 3.5 million to 4 million, housing 10 million people by 2031, it’s no surprise that building new homes is top priority for all mayoral candidates.

We have summarised below what the two main candidates have planned for housing over the next 4 years.

Conservatives – Zac Goldsmith

Target

To help Londoners on average incomes buy their first home.

How he plans to achieve this

  • Build 50,000 new homes per year
  • Prioritise new homes built for Londoners wanting to buy their first home
  • Mayor’s mortgage – to help more people in London purchase homes “off plan”
  • London plan – update the plan to ensure homes are prioritised for Londoners on average incomes wanting to buy their first home
  • Council support – aim to work with councils to support them in providing mixed income neighbourhoods

What about his plans for renters?

  • Continue to implement London Rental Standard to ensure all letting agents comply with the standards and target those charging excessive rental fees.
  • Minimum tenancy agreements of 3 to 5 years
  • Earmark a significant proportion of new homes for rent

Labour – Sadiq Khan

Target

For 50% of all new homes in London to be “genuinely affordable to rent or buy”.

How he plans to achieve this

  • Build 80,000 new homes per year, 50% of which will be affordable
  • Bring forward new land for building such as the land owned by Transport for London
  • Set up a dedicated team at City Hall to provide affordable homes to rent and buy
  • Use the £400m affordable homes budget to support housing associations and councils to build new social homes for rent
  • London Living Rent – where rates will be linked to average wages not market rates
  • Shared ownership homes – make more available at a better price
  • Set up a landlord licensing scheme to highlight good and bad landlords

Both have very different targets for providing affordable homes to rent or buy for the people of London but the main thing they agree on is that more homes need to be built to help fulfil the housing demand.

Watch this space to find out who crosses the finish line first and what will change for the London housing market.

By Anna Symington