London housebuilding is set to increase following emergency measures announced yesterday by housing secretary Steve Reed and mayor of London Sadiq Khan, aimed at unblocking stalled sites and increasing the delivery of affordable homes.
The package includes targeted planning changes intended to address bureaucracy and viability constraints that have slowed development across the capital.
London currently faces a shortfall in housing construction, with only 4,522 social and affordable housing starts in 2024/25, compared with 26,386 in 2022/23, affected by high interest rates, rising construction costs, planning complexity, and the impact of the Covid-19 pandemic.
The package announced on Wednesday provides time-limited support for housebuilders to improve scheme viability and speed up approvals across London boroughs. Measures include a fast-track planning route for sites delivering at least 20% affordable housing, temporary relief from the Community Infrastructure Levy for eligible schemes, and the removal of certain Greater London Authority guidance that has limited development density.
Refinements following consultation aim to allow more schemes to benefit. Housebuilders are required to meet agreed targets, with an Early-Stage Review triggered if milestones are missed, which may require additional affordable housing on site.
The government has also introduced legislation to expand the Mayor’s powers to call in and review planning applications for 50 homes or more where a borough is likely to refuse. This will take effect in May and is designed to shorten planning timelines by building on changes in the English Devolution Bill.
Reed said: “The scale of the housing crisis in London demands action – so that’s what we’re doing.
“This decisive action will turn plans on paper into thousands of new homes in our capital, with a clear message to developers to get on and build.
“We’re kickstarting London housebuilding so more Londoners can rent or own a home that is genuinely affordable.”
Khan commented: “Building more social and affordable homes is a top priority and I’m taking the tough decisions to get these much-needed homes built, including working closely with government to finalise this temporary emergency package which will unlock stalled sites across London.
“We’ve listened closely to the views of housebuilders, housing associations, councils and Londoners and the bold new measures respond to many of their concerns, ensuring we prioritise getting as many affordable homes built as possible and address the unique challenges London is facing.
“I make no apology for wanting to see more action to deliver new homes and will continue to work with government to accelerate housebuilding, tackling the building safety regulator backlog and supporting new schemes as we build a fairer and better capital for all.”
The changes aim to support the government’s target of building 1.5 million homes this Parliament and provide London with tools to increase its annual output toward 88,000 new homes.
The Mayor will also be able to make decisions on developments over 1,000 sqm on lower-quality Green Belt or Metropolitan Open Land, though approvals on high-quality Green Belt and Metropolitan Open Land remain restricted.
Work is already underway to release more homes. The New Homes Accelerator, in partnership with the GLA and London Borough of Barking and Dagenham, has progressed the 4,000-home Beam Park regeneration site in East London, unlocking 1,500 homes previously held up by a planning condition. A new Beam Park rail station could be integrated into the existing network, with funding being coordinated by the GLA, London Borough of Havering, Transport for London, and other partners.
The Accelerator has expanded in London with a dedicated city branch, NHA LDN, and a new planning support service for boroughs, ATLAS LDN. Over the past 12 weeks, the Building Safety Regulator has cleared almost all legacy Gateway 2 cases and approved over 10,500 new homes, including 3,800 in London.
Funding for the measures comes from the government’s £39 billion Social and Affordable Homes Programme, with up to £11.7 billion allocated for London. The GLA has also secured £324 million to create a City Hall Developer Investment Fund (CHDIF) to focus on stalled sites that can deliver homes quickly.
“Operational improvements are already accelerating decisions on new builds and clearing complex legacy cases. This progress is clear in the thousands of high-rise safe new homes we’ve approved in the capital over the last 12 weeks. Alongside this, new measures will also prioritise essential remediation works, ensuring hundreds of existing buildings across the country are safe to live in.
“We are committed to maintaining this momentum and delivering a proportionate regime but remain clear that speed will never come at the cost of the essential safety standards that all current and future high-rise residents deserve.”
Wanna bet ? A complete pipe dream following Rayner & CO’s 1,5 million target .
News last night shows NHS nurses travelling from Wales to London to work. Surely priorities relevant for Government or Councils to providing affordable homes for key workers.
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