The Ministry of Housing, Communities and Local Government (MHCLG) has today (23 October) announced emergency measures to accelerate housebuilding across London in response to a sharp decline in housing delivery.
The new package includes a time-limited planning route for developments with at least 20 per cent affordable housing, temporary relief from development levies, and a £322 million fund for the City Hall Developer Investment Fund.
These initiatives aim to tackle high construction costs, interest rates, and regulatory delays, unlocking tens of thousands of homes to help meet the government’s target of 1.5 million new homes and address the city’s ongoing housing crisis.
This includes the Home Builders Federation warning that London’s housing delivery is in “alarming decline”, with completions down 12 per cent to just 30,000 homes and starts at “crisis levels”, with only 966 projects approved last year – the lowest level since records began in 2006.
John Dickie, chief executive officer at BusinessLDN, welcomed the new measures as helping to get “more shovels in the ground”.
“With housing starts, planning applications and house sales at historic lows in the capital, the government and mayor are right to take action to accelerate delivery of the new homes that Londoners desperately need,” he said.
Peabody chief executive, Ian McDermott, who is also the chairman of the G15, an organisation of the largest housing associations in and around London, echoed the thoughts of Dickie, stressing that the emergency interventions were crucial to unlocking stalled sites while pushing for better public, private and social sector partnerships.
He added: “Time will tell if there is sufficient market demand for developers to scale up delivery on the back of today’s announcements, but the goal is to try and secure more much-needed social and affordable homes through the S106 system of developer contributions.”
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With these new powers, the mayor of London can fast-track housing projects and call in developments over 50 units.
The changes also relax design restrictions and adjust cycle storage requirements to make developments more viable.
However, some in the industry argue that more could be done.
“[The measures] will certainly help, but it would have been great to see a return of Section 106BA into the Town and Country Planning Act 1990 to bring back to life stalled developments and unlock tricky brownfield sites,” said Dan Hay, planning director at consultancy, Third Revolution Projects.
“All in all, though a positive step that should inject energy and vigour into the sector to create a positive end to the year and start to 2026.”
For suppliers and delivery partners, there is hope that the measures will restore momentum to the pipeline.
J.M. Hydrotech, an MEP specialist, said: “With viability improving and barriers lowering, collaboration and reliable project execution will become more important than ever.”
The measures come on the heels of efforts by the Building Safety Regulator and MHCLG to speed up building control applications for high-rise buildings by the end of the year.
It also follows the government announcement of a £500 million investment to accelerate growth in the Oxford-Cambridge Growth Corridor, unlocking new jobs, homes, and improved transport links, including the reopening of the Cowley Branch railway line in Oxford.
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