In a candid acknowledgment of London's ongoing housing crisis, Sir Sadiq Khan, the Mayor of London, emphasized the need for improved delivery of new housing as he attended the annual Mipim property conference in Cannes, France.

The Mayor stated, "I'm the first to admit supply has not met demand, and we have got to do better, and we’re going to do better with the support of national Government, councils, but also with some foreign investment." This statement comes as London faces significant challenges in affordable housing provision, described as experiencing 'a lost year' in housing starts.

Data indicates that the number of new affordable homes in London plummeted by a staggering 88% in the last financial year, declining from 26,386 units to just 3,156.

Several boroughs, including Harrow, Bexley, and Richmond-upon-Thames, reported starting work on only a single affordable property during this period.

The Mayor attributed these reductions to high construction costs, inflation, rising interest rates, shortages of skilled labor, and additional pressures from global events such as the Ukraine war and Brexit.

The UK Government has established an ambitious target of creating 88,000 new homes each year in London as part of a broader goal to construct 1.5 million homes across the country during the current Parliamentary term.

This target represents double the average historical rate of housebuilding in London and has not been met in a single year since 1934. In light of these targets, Khan identified the critical need to expedite the often-slow planning processes at the council level, which he believes are impeding progress.

Khan further noted that while initial council discussions may be positive, decisions frequently falter in committee stages, leading to wasted resources.

He suggested that delays when councils are unable to reach timely decisions on proposals are detrimental to the community's interests.

In this context, the Mayor proposed taking a more active role in planning matters, indicating a readiness to assume control over projects where councils fail to make decisions in a timely manner.

He also announced plans to establish additional mayoral Development Corporations to boost housing development across the city, particularly in high-potential areas such as Oxford Street.

Highlighting recent legislative developments, Khan mentioned a newly introduced planning and infrastructure bill, which aims to facilitate housing development by eliminating the 'hope value' associated with land, thereby restoring viability to proposed projects.

The Mayor expressed optimism regarding the role of Development Corporations, stating that these entities will be granted increased authority to streamline project approvals and assist developers in navigating the regulatory landscape.

The recent election of a Labour government, viewed as a significant shift in the political landscape after years of Conservative leadership, has also been cited by the Mayor as a positive change for London's housing efforts.

This shift prompted Khan's participation in Mipim for the first time since taking office in 2016. He noted the importance of communicating to potential investors that the current administration is proactive in fostering a conducive environment for investment in various sectors, including housing and infrastructure.

With over 20,000 delegates at Mipim, Khan highlighted discussions with investors and developers from countries such as Canada, the United States, Japan, the Middle East, and several European nations, indicating broad international interest in London's property market.

Amidst the landscape of fluctuating interest rates and increasing market confidence, the Mayor reiterated the call for foreign direct investment as crucial to addressing the city's housing needs.

He underlined the need for clarity around investment expectations and comprehensive guidelines to ensure that development in London meets community needs while retaining regulatory integrity.