The housing secretary and the mayor of London have confirmed emergency measures to unblock dozens of stalled sites and build thousands more affordable homes for Londoners.
There were only 4,522 social and affordable housing starts on site in London in 2024/25, compared to 26,386 starts reported in 2022/23.
In response, a new fast-track planning route is being introduced for sites delivering at least 20% affordable housing and temporary relief from the community infrastructure levy (CIL) for eligible schemes that meet affordable housing targets, with additional relief for those going further.
The measures were first floated last October but have now been confirmed following a consultation process.
Housing secretary Steve Reed said: 鈥淭he scale of the housing crisis in London demands action 鈥� so that鈥檚 what we鈥檙e 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.
鈥淲e鈥檙e kickstarting London housebuilding so more Londoners can rent or own a home that is genuinely affordable.鈥�
However, the British Property Federation (BPF), which represent developers, was underwhelmed. BPF policy officer Jordan McCay said, 鈥淭he GLA and MHCLG鈥檚 emergency package to boost housing delivery in London is a positive step to help to ease the scale of the viability challenge facing the sector. However, it is not ambitious enough to unlock the scale of housing delivery needed in the capital.
鈥淲e would still like to see more ambitious support for scheme viability and greater flexibility, which will be critical to restoring investor confidence and ensuring delivery at scale. Without this there is an ongoing risk that extremely limited affordable housing is delivered as projects cannot proceed to construction.
鈥淭he new fast-track planning route with a reduced affordable housing target, alongside CIL relief and grant funding, is pragmatic and the government has taken onboard feedback from the industry that the measures need to apply for an extended time period to truly unlock stalled schemes and accelerate delivery.
"The GLA needs to take the opportunity in development of the London Plan to meaningfully embed policy flexibility to respond to changing market dynamics on a permanent basis. Without this, similar measures will need to be repeatedly introduced."
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