The focus of this year’s London Real Estate Forum was primarily on residential property, reflecting the current political climate and the potential for significant financial gain in the midst of the Great British Housing Crisis. As someone who rents a small flat in an outer London borough and dreams of homeownership, discussions about the necessary increases in rents and house prices to make development profitable can be disheartening, especially considering the urgent need for more housing solutions.

The government’s efforts to streamline the planning system in order to expedite construction timelines and reduce the amount of land needed for development are well-intentioned. However, London faces its own set of challenges when it comes to planning, including restrictions on building height and limited availability of suitable sites. The emphasis on brownfield sites as potential development opportunities is important, but it’s crucial to acknowledge the physical constraints and complexities associated with repurposing these areas.

One of the key issues at the core of the housing crisis is the profitability of development projects. Housebuilders must make a profit to satisfy shareholders and sustain their operations, which can be challenging in a system that balances socialist planning principles with free market dynamics. Recent financial reports from companies like Berkeley Group reveal a decline in completed homes alongside price increases, underscoring the delicate balance between market demand and financial viability.

Regulations governing tall buildings, while well-intentioned, have also contributed to delays in construction as developers navigate the new legal framework. With limited space available in London, the logical solution seems to be building upwards, a strategy embraced by many European cities. However, British preferences for small houses and gardens, coupled with planning constraints, pose obstacles to achieving the city’s ambitious target of 80,000 new homes annually.

In order to address the housing crisis effectively, stakeholders must collaborate to overcome these challenges and implement innovative solutions. By leveraging available resources, embracing sustainable development practices, and adapting to evolving market dynamics, London can work towards creating a more inclusive and resilient housing market for all residents.