The government and mayor of London have confirmed emergency measures to unblock dozens of stalled sites and build thousands more affordable homes in the capital.

The package – confirmed by housing secretary Steve Reed and the mayor of London Sadiq Khan – revealed targeted planning changes designed to cut through bureaucracy and viability constraints holding back new homes across every borough. 

High interest rates, rising construction costs, complex planning rules and the legacy of the Covid-19 pandemic have created a series of hurdles for London’s housing market. This has resulted in only 4,522 social and affordable housing starts on site in London in 2024/25, which is considerably lower than the 26,386 starts reported in 2022/23.

Measured include targeted, time-limited support for housebuilders to improve the viability of housing schemes such as:

• A new fast-track planning route for sites delivering at least 20% affordable housing, meaning faster delivery and more affordable homes get built overall.
• Temporary relief from the Community Infrastructure Levy – charges paid by developers – for eligible schemes that meet affordable housing targets, with additional relief for those going further.
• Removal of targeted Greater London Authority (GLA) guidance that can constrain density which has been holding back the delivery of more homes on land already earmarked for development – meaning more homes can get built on sites that are ready to go.

The government has also brought forward the necessary legislation to expand the mayor’s powers to call in and review planning applications for 50 homes or more where a borough is minded to refuse. This will come into force in May. This builds on the progress already made in the English Devolution Bill which includes a faster representation process will cut up to six months off some planning decisions.

Mayor of London, Sadiq Khan, said: “Building more social and affordable homes is a top priority and I’m taking the tough decisions to get these much-needed homes built, including working closely with government to finalise this temporary emergency package which will unlock stalled sites across London.

“We’ve listened closely to the views of housebuilders, housing associations, councils and Londoners and the bold new measures respond to many of their concerns, ensuring we prioritise getting as many affordable homes built as possible and address the unique challenges London is facing.

“I make no apology for wanting to see more action to deliver new homes and will continue to work with government to accelerate housebuilding, tackling the building safety regulator backlog and supporting new schemes as we build a fairer and better capital for all.”

The mayor can also become the decision-maker for developments of over 1,000sqm on Green Belt or Metropolitan Open Land – bolstering plans to build on lower-quality, poorly connected grey belt land near public transport hubs. However, this will not make it easier for development to be approved on high quality Green Belt and Metropolitan Open Land.