The Housing Secretary and Mayor of London have confirmed ’emergency measures’ to accelerate housebuilding in the capital.
Sadiq Khan’s powers have been expanded to give the Mayor of London direct control over housing schemes at risk of being blocked.
Planning for sites delivering at least 20% affordable housing will be fast tracked.
Meanwhile there will be 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.
Nicholle Kingsley, partner, planning, real estate at Mishcon de Reya, said: “This package is a positive and pragmatic response to the viability pressures that have significantly slowed housing delivery across London. In particular, the ability for existing consents to benefit, alongside a reduced CIL liability, should make a difference at the margins.
“However, there is still a real concern across the market that these interventions are ‘too’ temporary and limited in nature for what is likely to be a much longer-term and wider viability challenge.
“With a 2028 application deadline and delivery milestones built in, there is a risk they won’t fully align with market realities while values remain subdued and costs and levies continue to rise. Short-term interventions alone are unlikely to unlock the scale of delivery London needs.
“Local authorities also need to proactively engage and apply the emergency measures which will undoubtedly create a tension with local determinations and boroughs under continued financial strain and resource constraints.”
Jace Tyrrell, chief executive of Opportunity London, said: “This is a much needed and welcome intervention to help unlock housing delivery across London at a time when viability pressures have stalled progress on too many schemes.
“Housing sits at the heart of London’s investment pipeline, with many of the capital’s largest regeneration opportunities collectively capable of delivering tens of thousands of new homes. Unlocking that delivery is critical not just to meeting housing need, but to enabling wider investment, jobs and growth.
“By providing greater flexibility and a clearer route to making projects stack up, these measures should help bring forward sites that might otherwise have remained on hold and restore confidence across the market.”
