London is quite sparsely populated compared with most capital cities, so there is tremendous potential to increase housing supply. The housing minister is right to promote housebuilding - the city is in desperate need of new homes. Statistics released by the Department for Communities and Local Government show just 189,650 new homes were added to the UK housing stock in the first year of this parliament, well below target.
This means that the Government will need to speed up housebuilding even further in the coming years.
The UK's housebuilding sector is "absolutely... not at the rate we need to be" in order to meet government targets, the housing minister has admitted. Gavin Barwell said although the UK is currently building 170,000 new homes a year, we're on course to miss a target of one million new homes by 2020. "Absolutely we are still not at the rate that we need to be in order to meet our ambition to get this country building the homes that are so desperately needed," Barwell said. Figures by Halifax showed although the average UK house price hit just over £217,000 in October, price growth was just 1.4 per cent between September and October. But although price growth is cooling, experts suggested constrained supply and burgeoning demand will continue to keep prices higher.