London Mayor wants to 'build even more' housing in the face of 'huge demand'

"There is no substitute for building new homes," said the mayor of the British capital during an interview with AFP on the sidelines of the MIPIM (international market for real estate professionals) trade fair in Cannes.

"We are building more affordable housing and more housing than at any time since the 1970s, but it is not enough. We must build even more," assures the Labour mayor, re-elected last May for a third term.

In line with Keir Starmer's Labour government's plan to create 1,5 million homes across the UK by 2029, the target in London is to "build 88.000 homes a year," says Sadiq Khan. "The last time we built 80.000 homes was in 1934, so it's never happened before," he adds.

And to achieve this, the mayor came to MIPIM to seek foreign investors.

At a conference on Monday, he called on investors to "provide Londoners with the affordable housing they desperately need."

In his "London Plan," which sets out the city's planning and development rules, Sadiq Khan does not restrict investors, but "encourages them to make profits and build homes for sale," while imposing a quota of "35% affordable housing," the construction of which is supported by a subsidy.

"And it's working," he assures, citing the record number of social housing units built as proof, "but it's still not enough because the demand is enormous," the mayor laments.

Don't become "anti-tourist"

The housing crisis in London, as elsewhere in the UK and other European cities, is rooted in the population growth experienced by the British capital, which now has nearly 8,9 million inhabitants.

"There's no problem" with this population increase, according to Sadiq Khan, "as long as you plan for growth: build more housing, increase supply, while trying to control the amount of rent people pay."

Except that in the United Kingdom, for several years, supply has failed to meet growing demand, which has driven up prices. Faced with this lack of affordable housing, becoming a homeowner is out of reach for many Britons, especially young people.

The number of people sleeping rough in England is expected to increase by 20% by 2024, and a third of the homeless are in London, according to the city council.

In this context, "you cannot afford to lose homes," adds Sadiq Khan. However, "the number of homes going to holiday rentals is greater than the number of homes being built," according to the Mayor of London.

He sees this situation, linked to the development of tourist rental platforms like Airbnb, as "a big problem" and wants to avoid "Londoners becoming anti-tourist or anti-development."

"That's why it's important to regulate this market," says Sadiq Khan. Despite the 90-night annual limit for short-term tourist rentals, via Airbnb or other platforms, "no one keeps a proper record" of this number, so the regulations are difficult to enforce.

The mayor of the capital is calling for real monitoring of overnight stays, cooperation from platforms, and room for maneuver to take action at the city hall level, particularly through fines.

He also asked the government for the possibility of "controlling rents" for Londoners, which increased by 11,6% in 2024. "I think rents are too high. I would like to set up a commission to examine what the appropriate level should be and look at what is happening in Paris, Vienna or Berlin."

This would come on top of measures included in a Conservative-led reform of tenants' rights currently being considered by the British parliament.