Khan is on the right track to boost housing delivery

COMMENT: The mayor of London, Sadiq Khan, is to be applauded. The past year has not been easy, yet he has stayed focused on fixing London’s housing crisis. He is right to do so – London is a global city and its health is critical to the country’s future competitiveness. Whether it’s ensuring London is an attractive place for global talent, or that London has the people it needs to staff its schools, hospitals and other critical services, or simply making sure that families and London residents have access to accommodation that suits their needs, it is vital that the capital’s elected leader rises to the challenge. The recent arrival of the Draft London Housing Strategy demonstrated the Greater London Authority’s commitment to building a city that works for all Londoners. It is a far-reaching document both in its ambition and in its commitment to exercise the mayor’s housing powers to their fullest. The mayor is right to recognise that the approach to delivering housing, up until this point, has not worked – and that without encouraging all housing tenures and more innovation to boost supply, we will not begin to address years of undersupply. Availability of public land for new homes will make or break this strategy. The mayor made the centrepiece of his strategy a commitment to buy £250m of land so that he can deliver on his affordable housing promises. That commitment is welcome, but it is also imperative that all public bodies are behind the mayor in bringing forward their redundant land into use, and in assessing land that can be allocated for homes. The build-to-rent sector is well placed to capitalise on this, and to be a key part of delivering homes for Londoners. Build-to-rent works well in urban sites, prime for regeneration, where renters want close access to employment zones. I am glad to see the mayor’s continued support of build-to-rent in his housing strategy, and that he understands the policy changes the sector needs to flourish. He is right to point out that the 3% SDLT surcharge has been harmful to a sector in its infancy. SDLT doesn’t make much sense when Build-to-Rent has the potential to deliver 240,000 homes by 2030 and bring much-needed new investment. The mayor has also embraced innovation. Innovation has a major role to play in increasing the pace of housing delivery. Housebuilding methods in this country have not changed much over the past century – it’s hard to think of another industry that could have survived under such circumstances.  There is huge scope for real estate, as an industry, to modernise. The mayor is right to focus on a twin-track approach: improving construction skills, and promoting more precision manufacturing of homes. Frankly, we need both. I was particularly pleased to see that the mayor is suggesting he will use London housing funds to promote more precision manufacturing, which is a welcome vote of confidence in modern methods of construction. His suggestion to work up a London model tenancy is canny politics. He can use it to illustrate the difference between him and his Conservative rival at the next mayoral election. And, should Labour win the next General Election, he will have a policy ready to go. More than a year into the job, it’s clear the mayor means business. His proposals set out a plan that aims to deliver on previous promises. He appears keen to work in partnership with our sector, and that will be central to achieving real results that will support action for people across London who desperately want to call this city home. Melanie Leech is chief executive of the British Property Federation