en.Wedoany.com Reported - The Greater London Authority (GLA) released a streamlined version of the "Draft London Plan," a strategic development blueprint for the capital over the next two decades, last week. The draft reduces the original 113 policies to 52, making it half the size of the 2021 version. The draft has been well-received within the industry. Jonathan Stoddart, Co-Head of UK Planning at CBRE, noted that many developers had previously called for a shorter, more strategic plan, and the new version simplifies so-called "trigger policies," indicating that the GLA has listened to feedback.
The plan, driven by London Mayor Sir Sadiq Khan, sets a target of building 585,000 homes over the next decade, including a significant number of affordable homes, although this figure has been reduced from an initial projection of 880,000. Core objectives also include leveraging the capital's economic strengths to drive growth by enhancing the Central Activities Zone—encompassing the City of London, Westminster, the West End, and several inner boroughs—supporting strategic economic clusters, and boosting the value of the night-time economy.
In the housing sector, the draft shifts affordable housing targets from a London-wide approach to individualized requirements for each borough: retaining 35% in central London, 25% in surrounding areas, and 20% in outer boroughs. Victoria Du Croz, Partner and Head of Planning at Forsters, stated that the significant reduction in the 10-year housing target reflects the challenges of development in London, and even the lower target may be considered ambitious. Hannah Quarterman, Planning Partner at Addleshaw Goddard, pointed out that central areas involve exceptional costs such as pollution, which could reduce feasibility, and similar issues exist in outer boroughs; some boroughs may view the requirements as too high or not of the appropriate tier.
Jordan McCay, Policy Officer at the industry body Real Estate: UK (RE:UK), praised the draft but noted a lack of mechanisms to accelerate housing development, suggesting the introduction of flexible rules similar to Section 106 BA, which, before its repeal in 2016, allowed developers to modify or waive affordable housing obligations when projects were unviable. Craig Carson, Regional Managing Director at Barratt London, welcomed the plan's positive focus on housing delivery, emphasizing the importance of advancing new sites and unlocking the potential of existing ones in a capital with limited space. Brian Berry, Chief Executive of the Federation of Master Builders, cautioned that affordable housing policies could disproportionately impact small builders, stressing the need for clarity on how small and medium-sized enterprises can participate in housing delivery. Paul Rickard, Chief Executive of affordable housing developer Pocket Living, noted that the draft includes some concessions to address concerns over environmental rule impacts, but further study is needed on how these measures affect delivery costs.
In the commercial real estate sector, the draft increases support for offices, particularly high-quality Grade A spaces. James Wickham, Partner in the Planning and Development team at consultancy Newmark, pointed out that the draft provides a clearer distinction in its tall buildings strategy, separating buildings over 30 meters from "metropolitan buildings" over 100 meters, a response to interventions by the Westminster Property Association (WPA) and the City Property Association (CPA). Charles Begley, Chief Executive of the London Property Alliance, stated that the draft recognizes the need for additional high-quality modern office space to support economic growth.
Nicholle Kingsley, Partner in the Planning team at Mishcon de Reya, believes the draft fails to address developers' reliance on meeting funding requirements, noting that local authorities are chronically under-resourced and require appropriate funding from the central government. The draft is now entering a 13-week public consultation period, with a public examination expected next year and adoption in early 2028. The mayor acknowledges that builders face a "perfect storm," but whether the new measures will substantially boost housing construction and economic growth remains to be seen.
