London

The London housing market remains dynamic but faces challenges. As of 2023, London had approximately 3.8 million homes. The private sector accounts for about 2.97 million dwellings, while social housing comprises around 816,000 units.

Renting is prevalent, with about 50% of Londoners renting their homes. The average monthly rent in London is over €2,550 (£2,200). For buying, the average house price in London is around €555,000 (£479,000).

Social housing plays a significant role, representing about 20% of London's total housing stock. There are approximately 717,000 social rented homes in the city, with 657,000 being general needs housing. Council housing accounts for 56% of general needs social housing, while housing associations provide 44%.

The market faces supply constraints, with an estimated annual requirement of 59,900-69,600 new homes, 63-68% of which should be affordable. Recent years have seen improvements in housing supply, with 31,850 net new completions recorded in 2017/18.

Affordability remains a major issue, with average house prices in London being about 17 times the national average salary. The rental market is equally challenging, with average rents equivalent to about 50% of the average London salary.

Despite these challenges, London's housing market continues to attract investment due to the city's status as a global financial and cultural hub.

Housing cooperatives play a significant role in London's housing landscape, with over 300 housing co-ops operating in the city. These cooperatives provide an alternative housing model based on collective ownership and community-led living.

The Greater London Authority (GLA) actively supports housing cooperatives through various initiatives. The Mayor's Community Housing Fund offers capital grants and revenue funding to support cooperative housing projects, with a total of £38 million allocated to deliver 500 starts on site by April 2024. The GLA also funds the Community Led Housing London Hub, which provides advice, support, and services to housing cooperatives.

London's small sites portal helps cooperatives identify suitable sites for development, and around 100 of London's housing co-ops are eligible to apply for Affordable Homes Programme funding to build new social rent homes.

Notable examples of housing cooperatives in London include:

1. Sanford Housing Co-op: The first purpose-built housing co-op in Britain, home to 130 members.
2. Bonnington Square: A collection of housing co-ops in Vauxhall with a communal garden and cafe.
3. The Drive Housing Co-op: London's newest housing cooperative in Walthamstow.

These initiatives demonstrate London's commitment to promoting cooperative housing as a viable and community-oriented housing solution in the face of the city's housing challenges.

The current London administration, led by Mayor Sadiq Khan, has made affordable housing a key priority. The city aims to build 116,000 affordable homes through the Affordable Homes Programme 2016-23 and between 23,900 to 27,100 homes under the 2021-26 programme.

To create more affordable and sustainable housing, London has implemented several initiatives:

1. The Affordable Homes Programme: This £4 billion government-funded scheme aims to build affordable homes, with a focus on social rent properties.

2. Planning policies: The London Plan sets a strategic target for 50% of new homes to be affordable. The "fast track" route encourages developers to include at least 35% affordable housing in new residential schemes.

3. Regeneration plans: The city is working to revitalize existing community housing and increase supportive housing options for those experiencing chronic homelessness.

4. Sustainability standards: New homes are required to meet net zero-carbon targets, with at least a 35% reduction in on-site carbon dioxide emissions.

5. Community-led approaches: The city supports innovative projects like BedZED, the UK's first large-scale eco-village, to promote sustainable living.

6. Section 106 agreements: These planning obligations require developers to include affordable housing in new residential developments.

Despite these efforts, London's affordable housing need continues to exceed the numbers delivered, highlighting the ongoing challenge faced by the city administration.