Mayoral Election Issues: The Housing Shortage

roofer colourThe population is 8.6 million and the city is struggling with a shortage of housing.  Sounds familiar?  While this describes London today it also portrays the capital in the late 1930s.

After a post-war decline, the population has just got back to the 30s peak and a housing crisis has come back too.  So what has happened to house building in the intervening years? How did London find itself with a similar problem?

First, a bit of urban history. The shape of the capital has changed. In 1939 far more people lived in central London – 4.4 million lived in inner boroughs while 4.1 lived in outer ones[1].  The most highly populated areas were Southwark, Tower Hamlets and Lambeth, and can be seen as the darker areas on the map.

House bulding map 1-2

By 2015, the population of inner boroughs had fallen by 1 million while the outer boroughs have swelled by 24% to 5.1 million.  The most highly populated areas today are Barnet, Croydon and Ealing.

House building map 2-2

This switch in population from inner to outer came about because of house building.  The population surge of the 30s was met with a surge in building, and most of it took place in outer areas[2].

House building chart 3-2

This lure of new housing in the suburbs and the loss of central London housing in the Blitz helped reshape the capital.

In the last decade fewer homes were built than in the 1960s and 70s, when the population was shrinking. House-building has failed to keep pace with the population.

Since 2002 London has seen a 21% increase in jobs and a 16% rise in population. Over the same period new homes have increased by 11%[3].

House building chart 4-2

The 11% figure disguises a stark difference between inner and outer boroughs and where those homes have been built. Data from the Department for Communities and Local Government shows that there has been a 37% increase in the number of homes in Tower Hamlets since 2001 and a 20% increase in Islington. But in the same period the growth rate in dwellings in 16 outer boroughs has been in single figures – with just 4% in Sutton and 2% in Merton.

house buidling map 5-2

This pattern of growth is a reversal of what happened through most of the 20th century when more than half of the new housing stock was provided in the outer boroughs.

This growth in inner areas is not uniform however. 28% of the housing stock in Tower Hamlets was built this century, the highest proportion anywhere in the UK. It has the space through the redevelopment of areas like Canary Wharf and Limehouse.  Kensington and Chelsea in contrast has seen a 2% growth in homes due to the lack of brownfield sites.

The building in inner London means these areas are becoming more densely packed. Housing density is measured in dwellings per hectare. The average for England as a whole is 1.8. The average rate for London is 21.5[4]. For Inner London it is more than double that again at 44.6. And for Kensington and Chelsea, the borough with London’s highest, it is 69.1 dwelling per hectare.  The lowest density is Havering with 8.7 dwellings per hectare.  Havering is 10 times larger than Kensington and Chelsea. If it were to have the same dwelling density as the Royal borough it would have nearly 800,000 homes not the 100,000 it has currently.

As in the 1930s, the location of home building is pulling the population.  The biggest rate of growth in the past 12 months is in the City of London, but the numbers are small. After that it is Tower Hamlets where there has been at a 2.3% rise in residents in a year.

The GLA’s forecast for the next 25 years[5] shows that Tower Hamlets will lead the growth in residents, closely followed by Newham as many head east in search of a home.

House buidling map 6-2

But can building keep pace with demand?   New home starts are climbing back towards where they were 10 years ago, but it is still not enough and the problem is widely acknowledged. In his housing strategy document last year[6], the outgoing Mayor, Boris Johnson, said that housing was an “epic challenge” and that the number of new homes being built in the capital would need to double to 42,000 per year for the next 20 years to keep pace with population growth.

House building in the capital has been bumping along at around the 20,000 level for the past 10 years[7]. Following the financial crisis of 2008 it dipped sharply.

House building chart 7-2

Most of the homes being built are in the private sector, not social housing, which raises issues about affordability. Even in the ‘affordable’ sector a shift has taken place.

More affordable housing was delivered in London in the 2014-15 financial year than for any period dating back to 1991[8]. 17,913 homes were built or acquired and made available (so not counted in the new starts chart above) in the affordable rented sector, according to data from the Department for Communities and Local Government, and the GLA.

Affordable rents were previously available through what was termed social housing. This is rented property provided by a council or a housing association with long, secure tenancies and rents at around 50% of the market rates.

Housing associations also provided Intermediate rental.  This gives a tenant a subsidised rent, usually around 60% of the market rate, while they save for a deposit to buy the property.

In 2010 the government introduced a new category, which it confusingly called Affordable Rent.  This aimed to give social landlords a route to maintaining or increasing the amount of lower cost rental while relying less on public funding. It allows them to charge more and have less restrictive tenancies.  Affordable Rent properties can charge up to 80% of the market rate.

It is this sector that has taken off in the past year, increasing the amount of affordable housing, but the amount of Social Rent housing has declined sharply since AR was introduced.  And this is not due to the building of new stock alone. Some Social Rent property is re-classified as Affordable Rent when it becomes vacant.

House building chart 8-2

The last time the delivery of affordable housing was at this level was in 2011-12.  In that year a comparable number of Intermediate Rent properties were made available.  But there were 11,374 Social Rent homes. In 2014-15 that had been reduced to 3,053[9].

All candidates are making pledges about houses but perhaps the voters’ decisions on the housing issue comes down to the answers to 3 simple questions.  How many houses will you build, what sort of homes will they be and where will you build them?

Sources

[1] http://data.london.gov.uk/dataset/population-change-1939-2015

[2] http://data.london.gov.uk/dataset/housing-london

[3] http://data.london.gov.uk/dataset/number-and-density-of-dwellings-by-borough

[4] http://data.london.gov.uk/dataset/number-and-density-of-dwellings-by-borough

[5] http://data.london.gov.uk/dataset/population-change-1939-2015

[6] https://www.london.gov.uk/what-we-do/housing-and-land/housing-strategy/mayors-housing-strategy

[7] http://data.london.gov.uk/dataset/housing-london

[8] http://data.london.gov.uk/dataset/housing-london

[9] http://data.london.gov.uk/dataset/housing-london

This report was produced in association with London Live’s election special programme London Votes

 

 

Why where you live is affecting your gas bill

Canary wharf 2-2People living in outer London boroughs are spending more money heating their homes than those living in central areas.

Data on gas consumption over the past 10 years shows that households in boroughs such as Harrow, Barnet, Bromley, Bexley and Richmond are consistently among the highest consumers of gas.

In contrast, Tower Hamlets, Southwark and Islington have the lowest levels of consumption.

In 2014 the average domestic consumption in Harrow was 17,000 kilowatt hours.  In Tower Hamlets it was a little over half that.

Gas consumption map

The nature of the housing stock is likely to be an important factor here.  The larger number of older, bigger homes homes in outer areas need more gas to heat than the smaller flats, both council and privately owned, in inner areas.

Data analysis on areas of the capital with the most energy efficient homes, previously reported by Urbs, shows Tower Hamlets as the leading borough, largely due to the modern development of flats and houses in Canary Wharf and Limehouse.

The area that perform best for energy efficient housing in the map below tend to be the ones with the lower levels of gas consumption in the map above.

energy efficient homes

Source data

See also

Tower Hamlets leads the way for London’s greener homes

Living in the past: The old housing keeping a roof over our heads

Half the city’s homes are flats but London is low in the high-rise stakes

Limehouse Link is the ultimate trap for speeding drivers

Photo: Limehouse tunnel entrance 1 by Fin Fahey ┃Wikimedia Commons

Photo: Limehouse tunnel entrance 1 by Fin Fahey ┃Wikimedia Commons

The Limehouse Link Tunnel has the worst record in London for speeding. In the 12 months to May this year speed cameras in the tunnel captured more than 21,000 drivers breaking the 30 miles per hour limit.

The tunnel accounts for over 20% of the 97,122 speeding offences captured by cameras operated by the Metropolitan Police from June 2014 to May 2015. The data was revealed by the Met in response to a Freedom of Information request.

The Limehouse Link Tunnel is just 1.1 miles long and connects the north approach to Tower Bridge with a point just north of Canary Wharf in Docklands. The majority of the camera flashes were seen on the westbound carriageway.

The camera on Cromwell Road by Kenway Road SW5 recorded the second highest number of offences. And the route westbound along the Cromwell Road is proving a speed trap for drivers in a hurry with the cameras near North End Road and Warwick Road in W14 catching thousands more.

Most active speed camera May 2014 – June 2015
Location Number of incidents
Limehouse Link Tunnel E14, westbound 17,110
Cromwell Road, by Kenway Road SW5 5,700
Chelsea Embankment by Cheyne Walk SW3 4,059
Limehouse Link Tunnel E14, eastbound 4,029
Cromwell Road, junction of North End Road W14 3,842

When caught by a speed camera a driver receives what is called a Notice of Intended Prosecution. The minimum penalty for speeding is a £100 fine and 3 points on your licence. This means that the cameras at the Limehouse Link netted more than £2 million in the 12 months.

The Metropolitan Police says that it has 989 fixed camera locations and 324 of these are fitted with cameras. 204 of these were operational at the time the request for information was made.

Source data

See also

Police identify the most ignored red light with 1,500 drivers caught on camera

Do fewer offences mean better bike behaviour or laxer policing?

London leads the way in declining car use but the East is bucking the trend

Passenger data reveals busiest stations where Tube strike will hit hardest

TubeMillions of Londoners will be struggling to find an alternative route between home and work from tonight as another Tube strike closes the network for more than 24 hours, with no trains running from 6.30pm Wednesday and all of Thursday.

The strike is over payments for drivers to take on night shifts for the introduction of the Night Tube service at weekends from September.

Each day 4 million journeys are made on the Tube. There are 270 stations spread along the 400 kilometres of track. Urbs has been looking at data from Tfl on the use of the stations to see where the biggest impacts will be felt.

In 2014 there were 2.9 billion entries and exits across the Tube network. The busiest station is Oxford Circus with nearly 144,000 people entering the station and 157,000 exiting on the average weekday. Oxford Circus is one of 10 very high use stations that accounted for a quarter of all entries and exits on the network in 2014.

Most of the others are the capital’s main railway stations, with Bank and Canary Wharf serving the financial districts.

Tube busiest weekday

Almost 400 times as many people get on and off at Oxford Circus as at the quietest station on the Tube network, Roding Valley. London’s 3 quietest stations are at the eastern end of the Central Line. 4 others in the top 10 quietest are on the Metropolitan Line.

Tube quietest

A strike on the Tube on a weekday will obviously affect more people than a weekend as the network has 40% more passengers than on a Saturday and twice as many as on a Sunday. But the difference in weekday/weekend passengers is much more pronounced at some stations, showing the workplace focused and leisure focused areas of London.

The stations with the highest proportion of weekday usage are clustered around the city or serving commuters in the east. Some see 90% of their passengers on weekdays. They don’t include any of the main line stations that are among the busiest generally.

Tube weekday ratio

The stations with the highest proportion of weekend use are leisure-focused destinations in central London and all three stations at Heathrow

Tube weekend busy

Source data

See also

25% rise in TfL staff earning more than £100,000

Crime down nearly a third in 5 years on buses, Tube and trains

Tower Hamlets leads the way for London’s greener homes

Modern flats

London has a bigger proportion of  energy efficient homes than the rest of England, and Tower Hamlets is the leading borough with 3 times the national average for the top green rating.

Whenever a home is built, sold or let it requires a Domestic Energy Performance Certificate that rates it from A to G for its level of energy efficiency.  11.2% of homes are rated as A or B in London compared to 8.8% for England. For A, B and C ratings London is ahead again – 41% compared to 36%.

Urbs looked at all the certificates on the local authority registers from 2008 to the end of the most recent quarter (Q2 2015). As our borough map reveals there are some wide variations in housing energy efficiency, likely related to the nature of the housing stock.

energy efficient homes

27% of the homes in Tower Hamlets are in the A/B category compared to just 5% in Kensington and Chelsea. Tower Hamlets includes the Canary Wharf and Limehouse areas that have seen a huge expansion in new build houses and flats that are more energy efficient than older homes.

Source data

See also

London house prices more than 100% higher than rest of UK