London's housing crisis is deepening as developers mothball major projects and housebuilding collapses to record lows. City Developments Limited has shelved its £1.3bn redevelopment of the 22-acre Stag Brewery site in south-west London, despite winning planning permission in May 2025 for 1,000 new homes, shops and offices, citing rapidly rising costs and tepid buyer demand. Work began on just over 5,500 homes in London last year, an 84pc drop compared to 2015, while fewer than 3,000 new-builds were sold in the capital between April and June this year, with just 589 going to UK individuals. The Home Builders Federation estimates an average of £76,000 has been added to the cost of building a home since 2020, and work has halted at one in five construction projects across the city, with the gates padlocked on 56 developments. Kier Group has said it will shift effort into infrastructure and construction given the volatility of the property market, and Barratt Redrow has cut its housebuilding forecasts for 2027, while average rent for a two-bedroom flat has hit record highs of almost £2,500 and London's population fell in 2025 for the first time in nearly 40 years outside the pandemic.
Barratt Redrow plcBarratt Redrow cut its housebuilding forecasts for 2027 amid tepid buyer demand and record-low London housebuilding
Kier Group PLCKier Group will shift effort into infrastructure and construction given the volatility of the property market
