Emergency measures designed to unblock stalled affordable housing sites across London have been confirmed by the Government and the Mayor of London. The package delivers targeted, time-limited planning changes designed to cut through the bureaucracy and viability constraints holding back new homes across the capital.
There were only 4,522 social and affordable housing starts on site in London in 2024/25, considerably lower than the 26,386 starts reported in 2022/23. The measures include:
• A new fast-track planning route for sites delivering at least 20% affordable housing
• 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 guidance that can constrain density, which has been holding back the delivery of more homes on land already earmarked for development. Housebuilders will be expected to make real progress, and will face an Early-Stage Review if they miss agreed targets and milestones, which could require them to deliver more affordable housing on site.
The government has also brought forward 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 and builds on the English Devolution Bill, which includes a faster representation process that will cut up to six months off some planning decisions.
Housing Secretary Steve Reed said: “This decisive action will turn plans on paper into thousands of new homes in our capital.”
Reacting to the package, Building Cost Information Service (BCIS) Chief Economist, Dr David Crosthwaite, said fast-tracked planning is important but cautioned that approval holdups are only one of several challenges faced by developers.
“The government is behind on its housebuilding targets and planning delays remain one of the biggest barriers to delivery. It’s encouraging to see action on a lever it can directly control. However, major constraints remain beyond its reach. Weak buyer demand, particularly in London, is a critical issue. With the for-sale market subdued, there is little incentive to accelerate building,” he said.
“The new emergency measures are unlikely to shift demand in the short term. That will depend on wider economic recovery and improvements in the cost of living, both of which now face renewed uncertainty amid rising energy price risks linked to tensions in the Middle East.”
The latest BCIS forecasts indicate the private housing sector will not return to growth until next year. Research published in January 2026 suggests private housebuilding in London has declined by 84% since 2015.
The latest data from the Office for National Statistics further showed a 10.7% year-on-year decline in new private housebuilding in the UK in January, alongside a 3.3% fall in public housebuilding.