Ministry confirms ‘emergency’ planning changes to fast track housebuilding in London

The Ministry of Housing, Communities and Local Government (MHCLG) said the measures were aimed at tackling the drop in housebuilding, which has seen just 4,522 social and affordable housing starts on site in London in 2024/25, compared to the 26,386 starts reported in 2022/23.

The package includes a new fast-track planning route for sites delivering at least 20% affordable housing. The Government said this would mean faster delivery and more affordable homes overall.  

Temporary relief from the Community Infrastructure Levy will also be introduced for eligible schemes that meet affordable housing targets, with additional relief for those going further.

In addition, the Government is to remove targeted Greater London Authority (GLA) guidance that it said can constrain density, which has been holding back the delivery of more homes on land already earmarked for development. This will allow more homes to be built on sites that “are ready to go”, it claimed.

The Government added that housebuilders will still be expected to make real progress, and will face an Early-Stage Review if they miss agreed targets and milestones.

As part of the announcement, the GLA secured an allocation of £324 million to establish a 'City Hall Developer Investment Fund' that will prioritise interventions on stalled sites that can deliver housing completions as soon as possible.

Alongside these measures, the Government also brought forward the necessary legislation 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. These powers, which were announced in October, will come into force in May.

The new powers also allow the Mayor to become the decision-maker for developments of over 1,000sqm on Green Belt or Metropolitan Open Land.

Housing Secretary Steve Reed said the changes would "turn plans on paper into thousands of new homes" and send a "clear message to developers to get on and build".

The Mayor of London, Sadiq Khan, meanwhile 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."

He added: “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.”

Adam Carey