London is facing a worsening housing crisis. In the first quarter of 2025, the number of rough sleepers reached 4,427, an 8% year - on - year increase, hitting a new record high. The government spends £4 million daily to accommodate 183,000 homeless people, including 90,000 children.
London Housing Crisis Worsens: Double Blow of Homelessness and Construction Dilemma
London is facing a worsening housing crisis. In the first quarter of 2025, the number of rough sleepers reached 4,427, an 8% year - on - year increase, hitting a new record high. The government spends £4 million daily to accommodate 183,000 homeless people, including 90,000 children. Local councils are facing a budget over - run of £330 million and are on the verge of bankruptcy. The private rental market has shrunk by 4.3%. With the decrease in housing supply and an 11.5% annual rent increase, one - fifth of tenants can't afford the rent.
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London needs to build 88,000 new homes annually, but the cost is as high as £2.2 billion, much higher than in other regions. There is a shortage of 160,000 construction workers, and more than half of the 35,000 existing job vacancies are difficult to fill due to skill shortages. The government has promised to invest £600 million in training technicians, and Mayor Sadiq Khan is promoting the construction of affordable housing and mold - prevention measures. However, the Labour Party's goal of building 1.5 million homes is still hampered by manpower and funds.
Analysts point out that high costs, low supply, and policy lags are pushing the housing crisis to the brink of "losing control". The future of London's housing market looks bleak, and urgent and effective measures are needed to address this pressing issue. Otherwise, the housing crisis will continue to worsen, affecting the lives of more Londoners and the city's social stability and economic development.
