The Government and Mayor of London have unveiled a long-awaited ‘Homes for London’ package, designed to kickstart housebuilding across the capital and address London’s declining rate of housing delivery.
The package introduces a series of time-limited measures aimed at unlocking stalled schemes and increasing the number of deliverable planning consents.
Key measures include:
- Reduced affordable housing requirements – A temporary cut from 35% to 20% on affordable housing targets, running until March 2028.
- New mayoral powers – The Mayor will be able to call in major schemes of 50 homes or more where a borough is minded to refuse permission.
- Community Infrastructure Levy (CIL) relief – A temporary exemption for schemes delivered before the end of 2028 that provide 20% or more affordable housing.
- Relaxation of design guidance – Removal of certain density, dual aspect and cycle storage requirements to streamline approvals.
- Simplified viability process – A new, time-limited planning route allowing schemes to secure permission without a viability assessment if they commit to 20% affordable housing, with half of those homes eligible for grant funding.
The benchmark grant funding rate for Social Rent has been set at £220,000 per home.
A six-week consultation on the detailed implementation of the measures will begin in early November. Both City Hall and central government hope the package will “reset” London’s housing delivery system and provide a boost to investor and developer confidence.
What this means for you
The package represents a major policy shift that could significantly change the viability of residential-led schemes across London. For an assessment of what the new measures could mean for your development or political planning strategy get in touch with Kevin McKeever on kevin.mckeever@hedry.co.uk.
