Latest data from the Land Registry has revealed that just 19 new-build private homes were sold in London during May.
This figure represents the lowest monthly sales on record and highlights the growing difficulties in the capital’s housing market.
The total is not only down from the 23 new-build sales recorded in April but also a striking 95% lower compared with the same month in 2024, when 352 homes were sold.
Such a dramatic decline raises serious questions about the strength of London’s housing sector and the Mayor’s pledge to deliver tens of thousands of homes each year.
Sadiq Khan has committed to building 88,000 homes annually, but the latest sales figures suggest this target is moving further out of reach.
The release of the Land Registry data came just as the Office for National Statistics (ONS) reported that average property prices in London are now unaffordable for virtually all households.
According to the ONS, “in London, the average home was not affordable for any household income decile,” underlining the scale of the affordability crisis.
The Home Builders Federation (HBF), which represents housebuilders across England and Wales, has been increasingly vocal in its criticism of City Hall’s housing strategy.
The trade body has argued that the Mayor’s affordable housing targets are “unrealistic” and have discouraged private investment in the capital’s housing market.
Neil Jefferson, chief executive of the HBF, said earlier this week that London’s current housing policies have “effectively made the city a no-go zone for housing investment.”
The HBF further warned that the long-running shortage of new homes has left affordability worsening year after year, forcing more households into temporary accommodation.
Its analysis shows that the average deposit needed for a London home now equates to 681% of the typical household’s annual income after bills are paid.
For first-time buyers, that means saving half of their disposable income for more than 13 years before being able to afford a deposit — a near-impossible task for many.
At the same time, planning approvals in the capital have also slowed, dropping 2% in the year to June, marking the lowest total since records began in 2006.
These setbacks cast fresh doubt on the Mayor’s goal of delivering 19,000 affordable homes by March 2026, with City Hall figures showing that only 347 affordable housing starts were recorded between April and June this year.
The Mayor’s office has pushed back, blaming the challenges on what it calls a “disastrous inheritance” from the previous Conservative government, as well as rising construction costs, economic pressures and delays linked to the Building Safety Regulator.
A spokesperson for the Mayor said: “The Mayor is doing everything in his power to increase housing supply across London. He has taken tough decisions, including exploring options for building on green belt land.
“Despite these obstacles, the Mayor remains committed to working with the Government to ensure that more homes of all types are built and that progress continues to be made.”
Download NOW
4 Simple Steps To Becoming Wealthy Through Property