The housing secretary and mayor of London have set out emergency measures to unlock dozens of stalled sites and build thousands of homes in the capital.

The package includes targeted planning changes designed to remove viability constraints that have been restricting housing delivery in London. High interest rates, rising construction costs, complex planning rules and the legacy of the Covid-19 pandemic have created a series of hurdles, resulting in only 4,522 social and affordable housing starts on-site in 2024/25, considerably lower than the 26,386 starts reported in 2022/23.

The package confirms targeted, time-limited support for housebuilders to improve the viability of housing schemes and get quicker approvals across every borough. This includes:

  • A new fast-track planning route for sites delivering at least 20% affordable housing, meaning faster delivery and more affordable homes get built overall.  
  • 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 which has been holding back the delivery of more homes on land already earmarked for development – meaning more homes can get built on sites that are ready to go.

The government says that housebuilders will be expected to make real progress, and will face an Early-Stage Review if they miss agreed targets and milestones, which could require them to deliver more affordable housing on-site.  

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, and builds on the progress already made in the English Devolution Bill, which includes a faster representation process that will cut up to six months off some planning decisions.

Housing secretary, Steve 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.”

Mayor of London, Sadiq Khan, said: “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 government says that the changes support the government’s mission to build 1.5 million homes this Parliament and give London its own tools to move at pace and start to get back on track to meeting its annual target of 88,000 new homes. 

As part of the measures, the Mayor can also become the decision-maker for developments of over 1,000sqm on Green Belt or Metropolitan Open Land – bolstering plans to build on lower-quality, poorly connected grey belt land near public transport hubs. However, this will not make it easier for development to be approved on high-quality Green Belt and Metropolitan Open Land. 

Paul Rickard, chief executive of Pocket Living, said: “The emergency measures are both welcome and necessary. The scale of the housing delivery challenge facing London cannot be underestimated and it is positive to see that both the government, and the mayor, have reflected this in the final proposals. These will support the housebuilding industry to get on and deliver. The need is even more acute than it was, given the likely impact of the war in the Middle East on issues such as construction costs and consumer confidence.”

“Viability is, and will remain, the critical challenge, which is why we are pleased to see feedback from the sector reflected in today’s announcements and for the measures go beyond those originally proposed, including the time limited planning route to benefit from the lower affordable housing rate of 20% extended, clarity on existing planning consents, and an expectation that this measures will come in to effect almost immediately. The pragmatic approach to CIL through a faster and lighter touch new Summary Appraisal could be a key boost to housing delivery, including unlocking existing stalled consents.”

Olivia Harris, chief executive of Dolphin Living, said: “There is much to welcome and support in the updated measures announced today, including the more flexible approach to CIL through the introduction of the lighter touch Summary Appraisal, along with an extension of the time limited planning route to benefit from the lower affordable housing rate of 20% until March 2028. However, as beneficial as these measures will be, the viability crisis remains very real and is only likely to intensify in the short-term. In addition to these measures, boroughs and the GLA need to offer far greater flexibility with regards to affordable tenure. By switching to intermediate rented tenure, then there is not only a boost to viability and ultimately deliverability, but also a significant benefit to those people who can’t access social housing in the capital yet can’t afford market rents either. These are the critical workers that the capital desperately needs to retain to not only grow the economy but deliver vital public services too.”