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The Economic Case for Increased Housing Supply in London
John Dickie (Director of Strategy and Policy, London First), Jonathan Seagar (Planning and
Development Consultant, London First), Sara Parker (Director- Member Relations and
London, CBI) and Colin Stanbridge (Chief Executive, London Chamber of Commerce) have
been invited to Homes for London Board for a discussion on the economic case for increased
housing supply. The note below on background and issues for consideration has been
supplied to them in advance to shape their contribution. Jamie Ratcliff will briefly set the
context to this item before a short opening statement from each of the attendees, leading
into a wider discussion.
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Background
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
London’s population is growing much faster than previously predicted. At the
same time, its economy has continued to outperform the rest of the country.

CBI has said that 70 per cent of businesses have cited the cost of housing as a
major barrier to growth.

The Mayor’s Vision sets out his ambitions to increase significantly the supply of
homes across London – to at least 40,000 homes per annum – to accommodate
both the increased population and to ensure that vital workers are not priced out
of the capital. At present, we are delivering about half that number.

The London Finance Commission backed the Mayor’s call for a long-term
funding settlement for housing, including the relaxation of borrowing rules for
housing investment and the devolution of property taxes.

The London Housing Strategy is currently being re-written. Its main aim is to
increase the supply of housing of all tenures, and places a greater focus on
addressing the shortage of homes for low and middle income working
households.
Issues for consideration
(i)
How big an issue is housing for businesses?
- Which companies have cited problems?
- What are the demographics of those experiencing problems with housing?
(ii)
What are the implications for the affordable housing debate?
- How does affordable supply contribute to growth and the economy?
- How do we ensure it best supports working households?
(iii)
How can we strengthen the investment case for housing?
- What are the arguments for treating housing as infrastructure?
- What lessons from other areas can we draw upon, e.g. Crossrail?
(iv)
How can we measure the impacts of housing delivery?
- The direct impacts on the housebuilding industry and supply chains
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The indirect impacts in supporting wider growth and housing London’s
workforce