According to a think tank’s analysis, the expenses associated with constructing homes in London exceed those in other regions of England.

The Centre for London revealed that the initial financial outlay for building the government’s goal of 88,000 new homes each year in the capital is approximately 43 times greater than the target set for the West Midlands.

This research was presented during the centre’s 2025 housing summit on Wednesday, where Sem Moema, the chair of the London Assembly housing committee, remarked, “If the housing crisis remains unaddressed, the essence of the city will be lost.”

A spokesperson for the Mayor of London emphasized, “The mayor is committed to collaborating with the government to create more truly affordable housing options.”

In a separate survey conducted by the politically independent think tank, it was found that 60% of London residents had contemplated relocating outside the capital due to the escalating housing costs in the last year, as reported by the Local Democracy Reporting Service (LDRS).

Ms. Moema, a Labour representative for Hackney, Islington, and Waltham Forest at City Hall, noted: “In my constituency, we are witnessing the gradual decline resulting from the persistent inability to resolve the housing crisis over the past 15 years, which is changing our city’s character for the worse.”

“In all three boroughs, we are even faced with the possibility of shutting down schools because there are virtually no children remaining in northeast London.”

“Families can no longer afford to buy or rent homes within my boroughs.”

The Centre for London’s study indicated that the situation is worsening due to developers facing initial expenses of at least £2.2 billion if they hope to meet the government’s target for the number of homes in the capital.

This estimation was derived from costs linked to the Building Safety Levy, Section 106 agreements, the Community Infrastructure Levy, and local planning fees.

In contrast, the West Midlands metropolitan area—which includes Birmingham—has an estimated cost of just £50.6 million, while Greater Manchester’s figure is slightly higher at £61.3 million.

In Wandsworth, a borough in London with the highest construction costs, the estimated requirement stood at £253.9 million, according to the LDRS.

Ms. Moema stated, “We have a generation that may never achieve independent access to the property market.”

“We must acknowledge this reality. Similar to climate change, the costs of inaction will surpass the expenses of investing further.”

A representative for the mayor commented, “The mayor is diligently working to make improvements, building on a commendable history of providing tens of thousands of genuinely affordable homes in the capital, along with the highest number of new council homes since the 1970s.”

Reflecting on the Labour government’s strategies to address the housing crisis, Centre for London CEO Antonia Jennings mentioned, “We have seen increased funding for the Affordable Homes Programme, planning reforms that permit development on lower-quality sections of green belt, and the introduction of the Renters Reform Bill.”

“However, these initiatives represent just the initial steps.”

She emphasized, “We urgently require bold solutions that effectively tackle the significant challenges facing the capital.”

The Ministry of Housing, Communities and Local Government (MHCLG) has indicated that addressing the housing challenges in London is a crucial element of its nationwide goal to construct 1.5 million homes and stimulate economic growth.

The government also noted the allocation of £200 million through the Brownfield Infrastructure and Land fund for key strategic projects throughout the capital.

Additionally, £81 million from the Housing Infrastructure Fund is being provided to Transport for London (TfL) to enhance Surrey Quays Station and to facilitate the development of over 8,000 new homes in Southwark and Lewisham.