Emergency planning reforms to boost London housebuilding

The UK Government has announced a package of emergency measures aimed at jumpstarting housebuilding in London, where new housing starts have collapsed in recent years.

The reforms, jointly announced by Housing Secretary Steve Reed and Mayor of London Sadiq Khan, introduce a time-limited fast-track planning route, levy relief for developers, and expanded mayoral powers to unlock stalled housing delivery.

The measures come amid what ministers describe as a “perfect storm” for housebuilding in the capital, triggered by high construction costs, elevated interest rates, legacy planning constraints, and wider economic headwinds. Government data shows more than a third of London boroughs recorded zero housing starts in Q1 2025.

At the centre of the reforms is a new planning route for schemes delivering at least 20% affordable housing, with a requirement that 60% of those units be for social rent. The fast-track process will be supported by temporary Community Infrastructure Levy (CIL) relief for qualifying projects, and developers will be granted greater design flexibility on density, daylighting, and cycle storage standards in a bid to ease viability constraints.

The fast-track regime will operate on a “use it or lose it” basis, with schemes required to commence promptly or face gain-share clauses requiring developers to contribute additional affordable housing delivery. The policy will be open until March 2028 or the publication of the next London Plan, whichever comes first.

The Mayor of London will also be granted new powers to call in and determine schemes of 50 homes or more where boroughs are minded to refuse, as well as developments on more than 1,000sqm of green belt land. The reforms also remove the requirement for a full hearing in some call-in cases, potentially cutting up to six months from the planning timeline.

Alongside the regulatory changes, the government confirmed £322 million of initial capital for a new City Hall Developer Investment Fund. This will sit alongside existing commitments under the £39 billion Social and Affordable Homes Programme, of which up to £11.7 billion is earmarked for London.

Speaking on the reforms, 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 in our Plan for Change.”

Mayor of London Sadiq Khan added: “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, I’m confident that we can kickstart housebuilding and deliver more of the affordable homes Londoners badly need.”

Consultation on the new planning route will begin in November. The measures form part of broader efforts by the Ministry of Housing and the Building Safety Regulator to speed up approvals for residential schemes, including reforms to high-rise building applications and new guidance on the use of Section 73 applications under the Town and Country Planning Act 1990.