The Mayor of London has set out a draft of the new London Plan, which aims to unlock more affordable housing across the capital over the next 20 years.
As part of the plan, a third of London boroughs will see affordable housing targets return to 35% on all new developments from 2028. Mayor of London, Sadiq Khan, had lowered the target to 20% in October last year.
These boroughs are Camden, Hackney, Hammersmith and Fulham, Islington, Kensington and Chelsea, Lambeth, Richmond upon Thames, Southwark, Tower Hamlets, Wandsworth and Westminster, as well as the City of London.
The threshold will rise to 25% in Brent, Ealing, Greenwich, Haringey, Lewisham, Merton, Newham and Waltham Forest, and remain at 20% for the remaining boroughs.
The London Plan proposes the delivery of up to 558,000 new homes by 2037 and include the use of a limited amount of green belt land, although any scheme positioned on such land would require a proportion of affordable housing, have good transport links and improve biodiversity. The use of brownfield sites will be prioritised, with housing developments on brownfield sites accelerated wherever possible.
The draft plan says that the target will be achievable, but only with the right national support, including investment in key transport infrastructure that will help to unlock large housing projects.
The new plan will also look to create space for new data centres and economic clusters for industries, such as AI and life sciences, that will help to boost London’s future economy.
The Mayor of London, Sadiq Khan, said: “London’s success depends on how well we plan for growth and the choices we make about the kind of city we want to be. This new draft London Plan is a blueprint for how we can continue to build a fairer, greener and more prosperous London for everyone over the next 20 years.”
“There are two key objectives that underpin this new plan: to build as many affordable homes for Londoners as possible in the years ahead, and to boost economic growth by creating the conditions for businesses to grow and thrive across the capital, including the industries of the future, like AI and life sciences.”
“Over the last 10 years, we have built a record number of homes, but it’s a difficult time for housebuilding now due to a combination of high interest rates, the rising cost of construction materials, the legacy of the pandemic and the lasting impact of Brexit. The new plan is about doing everything possible to meet the challenges we face on housing, as well as ensuring we deliver good growth, protect London’s nightlife, revitalise local highstreets and support the industries that will be crucial to London’s future economic success. This is how we can ensure our city remains the best place in the world to live, work and invest for decades to come.”
James Stevens, director of cities at the Home Builders Federation, said: “London’s housing affordability crisis is a challenge to the capital’s economic and social prospects, so it is encouraging that the Mayor is focusing on improving the viability of new housing in this draft London Plan. Housing delivery has declined in recent years so a renewed emphasis on reducing administrative complexity and a streamlined planning process is welcome.”
“We look forward to engaging constructively through the consultation to ensure these positive intentions translate into accelerated delivery on the ground.”
Fiona Fletcher-Smith, group chief executive of L&Q, said: “We welcome the Mayor’s ambition to accelerate the delivery of affordable homes and create the conditions for sustainable growth across London. At a time when housing need remains acute, a strategic approach that supports investment, unlocks development opportunities and prioritises affordability is essential.”
“The draft London Plan recognises both the scale of London’s housing challenge and the importance of partnership in addressing it. We particularly support the focus on maximising affordable housing delivery, making effective use of land and ensuring that growth is accompanied by the infrastructure, green spaces and services that communities need to thrive.”
“As one of London’s largest housing associations, we look forward to working with the Greater London Authority, boroughs and partners across the sector to help deliver the genuinely affordable homes that Londoners need, while creating stronger, more inclusive and sustainable neighbourhoods for the future.”
Consultation on the plan is now open, with Londoners invited to have their say up to 15 October.
