London house prices could fall by as much as £100,000 under plans proposed by Sir James Cleverly. The Conservative mayoral hopeful claims excessive taxes and bureaucracy are pricing young professionals out of the capital.
The former home secretary wants to cut the additional costs associated with building new homes. He argues that cheaper housing could help reverse the exodus of Londoners seeking more affordable places to live.
Speaking to The Independent, Cleverly claimed that taxes, regulation and other charges add around £100,000 to the price of a new-build home.
He said: “The accumulated cost of bureaucracy, taxes, and various other things adds about £100,000 per property onto new build properties in London. That’s £100,000 that doesn’t go into the bricks or mortar. It doesn’t go into the windows and doors. It just gets soaked up by tax and bureaucracy.”
Cleverly suggested that removing these costs could reduce the price of some flats from £350,000–£400,000 to £250,000–£300,000.
However, he has yet to identify which taxes or requirements he would remove. He has also not explained how he would ensure developers pass the savings on to buyers.
Londoners priced out of the capital
Cleverly’s proposals come amid concerns about the number of residents leaving London in search of more affordable housing.
Office for National Statistics figures show that around 420,500 people moved from London to other parts of the UK in the year to mid-2025. A further 183,000 moved abroad.
Meanwhile, approximately 288,500 people moved to the capital from elsewhere in the UK. Another 235,000 arrived from overseas.
Cleverly argues that housing costs are forcing younger professionals to reconsider their futures in the capital.
“We are losing talent. We’re losing young people from London. That is unsustainable,” he said.
He identified Braintree, Maidstone, Milton Keynes and Hemel Hempstead as destinations for Londoners seeking cheaper homes.
“They’re moving out of London because they just cannot envisage making the maths work for them in the city – that is a real problem.”
For estate agents, this shift could affect demand across London and the wider commuter belt. Buyers priced out of the capital may increasingly turn to more affordable locations.
Could a London mayor deliver cheaper homes?
Cleverly’s proposals would depend on the powers available to the Mayor of London.
The mayor influences housing delivery through the London Plan. This sets policies on housing targets, development density, affordable housing and design.
City Hall can also intervene in certain planning applications. Since May 2026, these powers have included some developments of 50 or more homes where a borough intends to refuse permission.
Changes to planning requirements could improve development viability and encourage housebuilding. However, the mayor cannot independently abolish national taxes or guarantee that developers will pass savings on to buyers.
Cleverly has also suggested reviewing other household expenses, including council tax, public transport and driving charges.
He believes reducing these costs could make London more affordable and encourage younger residents to stay.
The former cabinet minister announced in August that he would leave the Conservative front bench to pursue the mayoralty. He has also ruled out seeking re-election as MP for Braintree.
For London’s estate agents and developers, the key question is whether his proposals would increase housing supply and improve affordability.
For now, the proposed £100,000 reduction remains an uncosted ambition. Cleverly has yet to explain precisely how he would achieve it.
