Homes for London: A package of support
In response to the slow delivery of housing in London, Mayor Sadiq Khan and Housing Secretary Steve Reed have proposed a set of emergency measures designed to tackle the crisis and unlock tens of thousands of homes across the capital.
The measures, which are subject to a six-week consultation from November, aim to fast-track certain schemes, unlock stalled sites, and increase the availability of housing in the capital. The proposals include:
- Fast-tracked planning: Qualifying schemes which commit to the delivery of at least 20% affordable housing (on private land) will be fast-tracked, which means the applicant will not have to submit a viability assessment as part of their planning application. This is subject to a requirement for 60% of those affordable homes to be for social rent. Projects that follow the fast-track process will also be able to apply for grant funding to help with the delivery of the affordable housing
- Incentive for developers to build: To encourage early delivery, projects approved under the fast-track route which do not reach a fixed milestone (first floor) by the end of March 2030 will be subject to a gain-share mechanism, which means if market conditions improve and there is a surplus, the developer will be required to make a further contribution towards affordable housing with a 60:40 split in favour of the borough
- Increased power for the mayor: The government is proposing to make two additions to the mayor's call-in powers. First, a requirement for boroughs to refer planning schemes of 50 units or more where the borough is minded to refuse the application; second, the ability to call-in development of a building of 1,000 sq. m or more on green belt/metropolitan open land
- Temporary relief from CIL: Certain schemes may also benefit from time-limited emergency Community Infrastructure Levy relief where this is necessary to unlock the project. This would be limited to brownfield sites and would include a borough CIL relief of up to 50 per cent for qualifying schemes which commit to delivering at least 20 per cent affordable housing, and additional relief for those with higher levels of affordable housing
- Design flexibility: The removal of design guidance that constrains density, including standards relating to dual aspect and units around the core, and amendments to cycle storage requirements. Developers will have more flexibility if their projects meet basic standards for ventilation, daylight, and privacy. This change is intended to make housing projects more feasible, especially on sites that may have previously been deemed unsuitable due to design constraints
- £322 million developer investment fund: To further support housebuilding, the government has allocated £322 million to a new City Hall Developer Investment Fund. This fund will help unlock stalled sites and provide financial backing to projects that are struggling to get off the ground. In addition, the government has committed substantial funding to the Affordable Homes Programme, with £11.7 billion set aside for London.
Housing Secretary Steve Reed said: "Getting spades in the ground in London is crucial if we want to see the biggest increase in social and affordable housing and meet our target of delivering 1.5 million homes…"
The above measures are intended to help the government deliver its target and these steps will help, but some may question if they go far enough.
A copy of the Statement can be found here.