50% more people are sleeping rough in London compared to a decade ago, and more than 300,000 Londoners are currently on the waiting list for a council home.

Demand for homes in the capital is far higher than existing supply. This means that many people are falling into poverty or need to leave London completely because they have no affordable option for living here.

Fixing this situation has long been a difficult task, but it remains an urgent priority. If we don’t provide Londoners with the affordable homes they need to live in the city, the key workers who keep London running will have no choice but to leave.

Fixing this crisis is crucial for London’s future prosperity, and our leaders, businesses and housebuilders must rise to the challenge together. There is no single solution that can fix London’s housing market, so our report highlights the need for the long-term partnerships and big-picture thinking that can create the fair and sustainable housing system Londoners need.

Key findings

• 25% of Londoners live in poverty after paying their housing costs.
• Some Londoners are more likely to live in a good home depending on their ethnicity, location and economic background.
• Demand for temporary accommodation was up by 5% in the year to February 2023 and is already the highest in England. This is placing stress on local authorities and means thousands more homeless Londoners don’t have a proper home.
• The average rent in London is equivalent to 40% of average household income, compared to 26% across England.

This is the first report in our ongoing programme, Homes fit for Londoners. We will publish a second and final report in Winter 2023, which will share our view on the package of policies needed to give all Londoners good-quality, affordable homes.