London Is Running Out of Homes. Here’s Why

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2,158.
That’s how many London homes developers started building in the first half of 2025.
Even worse? The target was 44,000 per quarter, meaning developers are hitting just 5% of this goal.
We’ve been speaking directly with developers in the city who are trying to beat this figure.
And they told us exactly why the machine has stalled, and what it means for prices, rents and opportunity.
And so today, we’re going to take a tour around London to show you:
The three biggest bottlenecks stopping new homes in the capital
How a thin pipeline can push rents up and affect values
And why all this stagnation could actually be good news for investors

London is facing a severe housing shortage, and developers are struggling to hit construction targets.

we explore why only 5% of planned homes were built in the first half of 2025 and what this means for UK property investors.

From the three biggest bottlenecks in London’s development pipeline to the impact on rents, property prices, and investment opportunities,

this guide shows how savvy investors can turn a tight market into profitable UK property investment strategies in 2026.

Essential insight for anyone looking to invest in the capital’s buy-to-let market.