London faces a fresh housing crisis

London is on the brink of a significant housing crisis with a £32 billion funding gap for new homes
Homelessness is rising in the capital for the first time in six years
Homelessness is rising in the capital for the first time in six years
MICHAEL WALTER/PA

London is on the brink of a significant housing crisis with a £32 billion funding gap for new homes, while homelessness is rising for the first time in more than six years and the average first-time-buyer’s deposit now costs £56,000.

That is the grim analysis of the body, which represents the capital’s 33 councils. In a document that is likely to be signed off next week, it argues that welfare reforms could be about to make the situation worse.

The fears are laid out in a policy document by London Councils, the umbrella body for the local authorities, which warns: “London is moving towards a significant housing funding crisis, which will further undermine attempts to deliver and increase the new housing supply (and improve existing