New powers for London Mayor to review and call-in housing schemes and £322m in funding among emergency package

The Government has announced a raft of new emergency measures to significantly ramp up housebuilding, unlock stalled sites and increase the completions of homes across the capital.

It comes as more than a third of boroughs recorded zero housebuilding starts in the first quarter of this year.

Under the newly unveiled plans, housebuilding projects which commit to at least 20 per cent of affordable housing on private land in the capital will be accelerated, subject to a requirement for 60 per cent of those affordable homes to be for social rent and some of this will be eligible for grant funding.

The targeted measures will tackle squeezed viability, including the removal of design guidance that constrains density and temporary relief from development levies for schemes able to start promptly and guarantee affordable homes for Londoners.

The ‘use it or lose it’ route will come with strict conditions to speed up the delivery of new homes, which if not met will require developers to share their profits with local boroughs to deliver more affordable homes.

The Mayor’s new powers to fast-track housing will include the ability to review and call-in housing schemes of 50 homes or more where boroughs are minded to refuse. City Hall can also become the decision-maker regarding developments of 1,000sqm or more on green belt.

Sadiq Khan will also be able to expedite the call-in process in certain cases without the need for a full hearing process, cutting up to six months from the planning cycle. He will also be given greater freedom to deliver Mayoral Development Orders to unlock more homes by removing the veto from local authorities.

An initial £322 million has also been confirmed by Government to establish a City Hall Developer Investment Fund so the Mayor can further increase housebuilding.

This is on top of the previously announced £39bn for the Social and Affordable Homes Programme (of which the Greater London Authority (GLA) will receive up to £11.7bn) and low-cost loans through the National Housing Bank.

Sadiq Khan said: “Affordable housing has always been a top priority for me as Mayor. We have started more new council homes in London than at any time since the 1970s and, prior to the pandemic, completed more new homes in London than any time since the 1930s.

“But there’s now a perfect storm facing housebuilding in London due to a combination of high interest rates, the rising cost of construction materials, the impact of the pandemic and ongoing consequences of Brexit. All of this means we are now in the midst of the most difficult period for housebuilding since the global financial crash.

“Urgent action is required, which is why I’ve been working with the government on this package of bold measures. I grew up in a council house, so I know the importance of social and affordable homes. I’m not willing to stand by while the supply of affordable housing for Londoners dries up.

“With these significant new powers and the initial £322 million of funding from the government – plus the short-term emergency action to get more investment flowing into affordable housing – I’m confident that we can kickstart housebuilding and deliver more of the affordable homes Londoners badly need.

“I will always do everything I can to accelerate the delivery of genuinely affordable homes as we continue to build a better, fairer London for everyone.”