London business leaders are urging a major housebuilding push to revitalize the capital's economy after construction starts plummeted by more than 80% over the past decade, according to research firm Molior. The dramatic decline in new housing projects has raised concerns about economic stagnation and affordability challenges in one of Europe's most dynamic cities.

Industry executives argue that increasing housing supply would create thousands of jobs in construction and related sectors while addressing the city's chronic housing shortage. The construction sector has been hit particularly hard, with many firms scaling back operations or closing entirely as development pipelines dried up. This downturn has rippled through supply chains and local economies that depend on building activity.

The call for action comes as London faces multiple economic pressures, including high living costs and post-Brexit adjustments. Business groups are pushing for streamlined planning processes and incentives to encourage developers to start new projects. Without a significant increase in housing construction, London risks losing its competitive edge as companies struggle to attract and retain talent in an increasingly expensive and constrained housing market.