London's housing challenge and the case for devolution: key insights from our Labour Party Conference roundtable with LSE

Housing and devolution were the focus of our BusinessLDN breakfast roundtable, sponsored by LSE, at the Labour Party Conference in Liverpool earlier today, bringing together business leaders, academics and political stakeholders, including representatives from No. 10, to discuss some of the biggest challenges facing the capital.

Chaired by our Chief Executive, John Dickie, the event drew on new polling conducted by LSE examining public attitudes towards two issues that will shape London’s future.

Opening the roundtable, John highlighted the scale of the challenge facing homebuilding in the capital and why it matters not only as a social issue but as an economic one. He noted that the cost of renting and buying a home is increasingly putting the city beyond the reach of many people, making it harder for employers to attract and retain the talent they need to grow. He also pointed to difficult market conditions, including high construction costs and an uncertain regulatory environment, which are holding back delivery at a time when more homes are urgently needed.

The polling presented by Jenevieve Treadwell, Policy Fellow at LSE, reinforced the scale of the problem. Affordability emerged as the defining local issue, with fewer than three in ten respondents (29%) expecting to be able to buy a home in London in the future. Many anticipated needing support from family members, while 16% believed home ownership in the city would never be achievable.

These concerns were particularly pronounced among younger people and private renters, raising important questions about London’s ability to retain and attract talent. This can be directly linked to recent data showing a decline in London’s population.

One of the most striking findings concerned public attitudes towards development. While policymakers and industry leaders often stress the importance of increasing supply, the research suggested many people are unconvinced that building more homes alone will improve affordability. When presented with potential benefits arising from development, respondents were significantly more likely to favour tangible local amenities than social housing, by 62% to 38%.

The polling also shed light on views of social housing. Respondents were keen to see support directed towards those with a clear need, while placing importance on contribution, fairness and personal responsibility.

On devolution, the results painted a more nuanced picture. Londoners were broadly positive about Prime Minister Andy Burnham, with 41% believing the city would be better off under his premiership than under Keir Starmer’s, compared with just 19% who thought it would be worse off.

However, support for greater fiscal devolution was notably weaker. Many Londoners did not see additional powers for City Hall as a solution to the issues they face, while the polling also revealed a significant disconnect between public perceptions of what the Mayor and borough councils are responsible for delivering and the reality.

The polling also sparked a lively discussion about housing, devolution and how the benefits of growth can be better communicated. Participants reflected on how more people can be helped to understand the benefits that flow from development, as well as the financial pressures facing boroughs as they meet their legal obligations on temporary accommodation.

Questions were also raised about whether affordable homes could be delivered more effectively across a wider geography of London, rather than relying primarily on on-site provision in higher-value developments in Zones 1 and 2.

The roundtable highlighted both the scale of London’s housing challenge and the complexity of building public support for the changes needed to address it. As the Government develops its agenda on homebuilding and devolution, ensuring London can deliver the homes it needs while securing the powers and resources required to support prosperity will remain critical to the city’s future success.

Thank you to everyone who joined us for the discussion. If BusinessLDN members would like to receive a copy of the LSE polling presentation, do please get in touch, and we would be happy to share it.