Wedoany.com Report-Oct. 24, In response to a challenging period for housebuilding in London, where over a third of boroughs reported no new home construction starts in the first quarter of 2025, a series of emergency measures has been introduced to stimulate development. These measures aim to address barriers and encourage the construction of affordable homes across the city.

The affordable housing requirement for new developments has been adjusted from 35% to 20% to enhance project viability and encourage developers to begin construction. A streamlined planning process has been introduced for sites meeting the 20% affordable housing threshold, enabling faster project starts. Additionally, design guidelines limiting density have been relaxed, and temporary exemptions from development levies have been granted for projects that can begin promptly and include affordable housing.

The Mayor of London has been granted expanded authority to accelerate housing projects, including the ability to review and take control of schemes involving 50 or more homes when boroughs are likely to reject them. City Hall will also act as the decision-maker for developments exceeding 1,000 square meters on green belt land. To further support these efforts, an initial £322 million has been allocated to establish a City Hall Developer Investment Fund, aimed at boosting housing construction.

These initiatives build on actions by the Building Safety Regulator to expedite building control approvals for high-rise structures. Housing Secretary Steve Reed stated: “I have worked closely with the Mayor of London to give the capital the shot-in-the-arm it needs to ensure more Londoners have an affordable home of their own.”

The Mayor of London, Sadiq Khan, commented: “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. 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.”

These measures are designed to address economic and logistical challenges, ensuring London can meet its housing needs through increased investment and streamlined processes.