Boris pledges £1bn to support London housebuilding

London mayor Boris Johnson has acknowledged that the dearth of London housing supply has become the biggest challenge facing the capital's economic development.

Boris announced that "for over 30 years, regardless of boom and bust, governments of every hue have failed to build enough homes". London's minimum target for home building stands at 42,000 for this year.

That target is very ambitious - construction has averaged around 20,500 over the past five years - and it seems unlikely that additions to supply will more than double this year.

The mayor has unveiled £1bn of funding to support the delivery of 45,000 low cost homes into the next mayoral term. Further funding is to be announced shortly.

Richard Blakeway, deputy mayor of housing and property, said that "housing is a critical issue for all major global cities".