There are major economic challenges facing the housing sector, including building cost inflation and high interest rates, leading to increased cost of financing. The cost of construction materials has increased significantly compared with before the pandemic [1], with real estate company JLL stating that “the cost of cement, timber and glass is up +35%” [2].
According to a paper presented to the London Partnership Board, “1,350 London-based construction sector businesses became insolvent between 2019 and 2022, representing about 1 in 8 London companies that became insolvent during that period” [3].
Inflation, falling real wages and high mortgage rates have also led to a contraction in demand for market homes.
The London Assembly Housing Committee will meet tomorrow to review market trends in housing delivery post-Brexit and post-pandemic, including drops in private housebuilding, and the impact that these will have on housing supply in London.
The guests are:
- Seena Shah, Director of Communications, Federation of Master Builders
- Michaela Bygrave, Viability Consultant for Community Led Housing and Managing Director of Pointe Michel
- Dr Chris Foye, Lecturer in Housing Economics at University of Reading
- Katy Warrick, Head of London Residential Research, Savills
- Amy Shaw, Partner, Trowers & Hamlins LLP
The meeting will take place on Wednesday 6 December 2023 from 10am, in Committee Rooms 2&3, City Hall, Kamal Chunchie Way, London, E16 1ZE.
Media and members of the public are invited to attend.
The meeting can also be viewed LIVE or later via webcast or YouTube.
Follow us @LondonAssembly.
Notes to editors
- London Housing Market Report: Nov 2023
- JLL, ‘The construction starts fall across London’, 15 November 2023
- London Partnership Board, Making the economic case for housing investment in London, 17 October 2023
- Read the agenda in full.
- The Lord Bailey of Paddington AM, Chairman of the Housing Committee, is available for interview.
- Find out more about the work of the Housing Committee.
- As well as investigating issues that matter to Londoners, the London Assembly acts as a check and a balance on the Mayor.
For more information, please contact Tony Smyth in the Assembly Media Office on 07510 488715. For out of hours media enquiries please call 020 7983 4000 and ask for the Assembly duty press officer.