140,000 new jobs created as a result of Mayor’s record-breaking affordable housing delivery – but momentum will be lost without urgent Government action  

• City Hall analysis shows 140,000 new construction jobs have been created in the capital as a result of the Mayor’s record-breaking housing delivery under the 2016-2023 Affordable Homes Programme 
• Mayor announces employment figures as Deputy Mayor for London, Joanne McCartney, visits a major new development at Manor Road Quarter, set to deliver 800 new homes in Canning Town – 50 per cent of which are affordable 
• Despite huge progress made, Mayor warns momentum is being lost due to Ministers being ‘asleep at the wheel’ in tackling a national housing market slowdown  
• Mayor renews call on Government to urgently step up with £2.2bn in investment to safeguard jobs and affordable housing delivery in the capital  

The Mayor of London, Sadiq Khan, has today announced that his record-breaking delivery of affordable homes across the capital has significantly boosted the number of skilled jobs in the construction sector. 

City Hall analysis shows that 140,000 new jobs have been created in the construction sector and associated sectors such as housing management as a direct result of the resurgence of affordable housebuilding by councils and housing associations in the capital in the last seven years. [1]  

Analysis by the GLA using the National Housing Federation’s local economic impact calculator suggests that each new home built is associated with 1.2 direct jobs, providing significant benefits to the London economy.

Estimates suggest that were ministers to provide London with the extra housing funding it needs of £2.2bn, it would deliver an additional 9,500 homes – and boost London’s economy by creating over 11,000 additional jobs.

Housing has been a top priority for Sadiq since he became mayor in 2016 and he has left no stone unturned in getting London building again. London has completed more homes of all types in recent years than at any time since the 1930s, boosted council homebuilding to the highest level since the 1970s, and exceeded the ambitious target of starting work on 116,000 new genuinely affordable homes in the capital. 

The Deputy Mayor for London, Joanne McCartney, today visited Manor Road Quarter in Canning Town, where she took part in a topping-out ceremony to mark the first phase of completion of the major development which is set to deliver 800 new homes – 50 per cent of which will be affordable. 

In addition to delivering more high-quality affordable homes to meet the needs of Newham’s population, which is expected to be half a million by 2033, Manor Road Quarter has created over 200 new jobs spanning construction, project management, and social value creation. This includes 36 new apprentices, all local to Newham, which is double the target set by Newham council.  

During her visit, Joanne met with several apprentices who had positive stories of embarking on an exciting new career in construction after formerly being unemployed, and heralded the crucial role that landmark developments, such as Manor Road Quarter, play in providing opportunities for those in the capital’s construction sector.  

However, the Mayor has warned that the huge progress made in London boosting housebuilding of all types is increasingly at risk of losing momentum due to Government delay over the national slowdown in housebuilding.  

Last month, the Mayor wrote to the Housing Secretary to warn that developers could be forced to down tools if the Government fails to provide the funding that’s required to revive housing delivery across the country, which housebuilders warn could fall to the lowest level since World War II.  

A lack of commitment from the Government to tackle the national housebuilding crisis has already begun to take hold in London. Recent City Hall analysis has shown a 41 per cent decline in the number of homes on major planning applications referred to the Mayor compared to the same period in 2022, and a 53 per cent reduction compared to 2021. [2] 

The Mayor is renewing his call on the Government to urgently step up and inject £2.2bn in the short-term to boost London’s affordable housing delivery to levels that were agreed as recently as 2020. In the longer-term, Sadiq continues to call for the £4.9bn a year that’s needed to deliver the overall levels of affordable housing that the capital needs.  

The Mayor of London, Sadiq Khan, said: “I’m extremely pleased that 140,000 new jobs have been created as a result of our record-breaking delivery of affordable homes in the capital.  

“These latest figures show that investment in the delivery of new housing doesn’t just mean more high-quality and affordable homes for Londoners, it also means new jobs and career opportunities – and in turn, a sector strengthened by a better skilled workforce.  

“However, this progress is being put at risk by a national housing slowdown, while Ministers are asleep at the wheel. I urge the Government to safeguard the progress we’ve made with a £2.2bn boost to investment in London to protect jobs and housing delivery in the capital.

“A renaissance in house building across the country is not only desperately needed, but would be a real turbo charge for the UK’s economy.”

The Mayor of Newham, Rokhsana Fiaz OBE, said: “In response to the catastrophic housing crisis having a real human impact on Newham residents and Londoners; we are marshalling all our efforts in building homes that local people can afford.  That’s why with the help of Mayor Sadiq Khan’s affordable homes programme we have delivered the highest number of affordable homes of any London borough in the past two consecutive years. That is providing hope for the nearly 37,000 people on our housing waiting list. 

“That’s 1,156 affordable homes completed in the past 5 years, with hundreds more in the pipeline. As well as that some new 10,142 jobs in construction sector have been created since April 2021, generating an additional £1 million into our local economy and 49 apprenticeships for our young people.

“The cost-of-living crisis and disastrous national economic policies is leading to private developers stopping their housing delivery. It means that affordable housing is becoming a distant dream for thousands and thousands of Londoners; and that’s why it is vital for local authorities and the public sector to be supported with more money from central government to build homes. Some 60 percent of the total number of England’s households in temporary accommodation live in the capital, with nearly 7,000 in Newham alone. That’s why I support Sadiq’s call for government to give London £2.2 billion so that we can build much needed homes and create thousands of more jobs.”

The Chief Executive of Metropolitan Thames Valley, Geeta Nanda OBE, said: MTVH is proud to be involved in this partnership which is investing in Newham through new, affordable homes. The development at Manor Road is an exciting project which will deliver 804 new, mixed tenure homes for the area. All too often, we hear of the difficulties people across London face in accessing an affordable place to call home. With 34,000 people on Newham’s housing waiting lists, the borough is no stranger to these challenges.

“The development at Manor Road is a crucial step in helping to alleviate the housing pressures facing the local community. As the new homes are of a mix of sizes, these benefits will be felt by families and single people alike.

“Manor Road is also a clear demonstration of what can be achieved when national and local government work with the housing sector to build the homes which will help us to tackle the housing crisis both in London and across the nation.

“Investment in housing is an investment in our entire economy and society. Continuing these partnerships is crucial as we work to deliver the homes which ensure everyone has the chance to live in a safe, warm, and affordable home and to live well.”

ENDS