Labour politicians in government and London have given details of measures to help ease the capital’s housing crisis.
Housing Secretary Steve Reed and London Mayor Sadiq Khan have admitted in a statement that “the capital is building far fewer homes than it needs.”
It blames high interest rates, rising construction costs, complex planning rules and the legacy of the Covid-19 pandemic for “a series of hurdles.”
This has resulted in only 4,522 social and affordable housing starts on site in London in 2024/25, which is considerably lower than the 26,386 starts reported in 2022/23.
So the emergency measures include:
- A new fast-track planning route for sites delivering at least 20% affordable housing;
- Temporary relief from the Community Infrastructure Levy – charges paid by developers – for eligible schemes that meet affordable housing targets, with additional relief for those going further;
- Removal of targeted Greater London Authority (GLA) guidance that can constrain density, meaning more homes can get built on sites that are ready to go.
The government has also brought forward the necessary legislation today to expand the Mayor’s powers to call in and review planning applications for 50 homes or more where a borough is minded to refuse.
This will come into force in May.
Reed comments: “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.”
And Khan adds: “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.”
The Mayor can also become the decision-maker for developments of over 1,000 square metres on Green Belt or Metropolitan Open Land – bolstering existing Labour plans to build on lower-quality, poorly connected grey belt land near public transport hubs.
