Property

London launches new housing policy to accelerate delivery and boost affordability

Friday, 24 October 2025 4:05AM UTC

The UK government and London Mayor Sadiq Khan have unveiled a two-year package aiming to revitalise the capital’s housing market through relaxed planning rules, financial incentives, and strategic planning powers, with the goal of increasing housebuilding and supporting affordable homes.

The government and the Mayor of London have jointly unveiled a significant package aimed at reviving the sluggish housebuilding market in the capital. Central to this new policy is a temporary reduction in affordable housing requirements from the current 35% to 20% for private land developments, applicable for two years. This move allows developers to secure planning permission without undergoing viability assessments, which often delay projects. Additionally, social housing grants will now be permissible for half of the affordable homes under this revised quota—a departure from prior rules that barred grant use for homes purchased from private developers under section 106 agreements.

The support package also introduces adjustments in design standards to increase scheme density and viability. Notably, it relaxes the rigid enforcement of dual aspect dwelling requirements—criteria that previously limited how many homes could be built due to design constraints. The new guidance will grant developers greater flexibility in mixing single and dual aspect homes while still ensuring adequate ventilation, daylight, privacy, and protection from overheating. Furthermore, restrictions on the number of homes served by a single staircase or elevator core are being eased, addressing another barrier to higher-density development. The package also removes guidance on cycle parking minimums, further reducing constraints on development layouts.

Financially, the package offers a temporary relief from the Community Infrastructure Levy (CIL), which developers pay to fund local infrastructure. Qualifying schemes that commit to delivering at least 20% affordable housing will receive a 50% relief on borough CIL charges, with the possibility of greater relief for projects exceeding this affordable housing percentage. This measure aims to unblock stalled developments by improving their financial viability. Consultation on these proposed changes will run concurrently for six weeks starting in November.

To bolster oversight and encourage strategic development, the Mayor of London will gain new powers to call in planning applications for schemes exceeding 50 homes if local borough councils are inclined to refuse them. Moreover, the mayor can intervene in developments of 1,000 square metres or more on designated Green Belt and Metropolitan Open Land, potentially accelerating crucial housing projects. These powers are intended to facilitate additional delivery of homes in areas where local resistance might otherwise hinder progress. The package also includes provisions to streamline mayoral decisions and enable Mayoral Development Orders for large strategic projects without requiring borough consent.

The package responds to growing concerns over London's housing delivery, with Greater London Authority data showing a steep slowdown—only 3,447 homes began construction in the first half of the current financial year, against 27,210 starts in 2024/25, a 15-year low. Housing Secretary Steve Reed emphasised the urgency of "getting spades in the ground," linking the initiative to the government's broader "Plan for Change," which targets the delivery of 1.5 million new homes nationally. Mayor Sadiq Khan highlighted the critical need for affordable housing, referencing his own upbringing in a council house and his commitment to ensuring London's housing supply does not dry up.

The policy also incorporates a gain-share mechanism, designed to increase the affordable housing contribution on sites that extend beyond March 2030 if market conditions improve, thus encouraging continued delivery even beyond the initial two-year window.

Complementing this London-focused initiative is the UK government’s wider £2 billion investment to support the construction of up to 18,000 new social and affordable homes nationwide. Described as the largest boost in social and affordable housebuilding in a generation, this funding aims to provide safe and secure homes for working families, further supporting the Plan for Change's aims to stimulate economic growth and address the housing crisis on a national scale.

Collectively, these measures represent a multi-faceted attempt to accelerate housing delivery in London and across the UK by addressing financial, regulatory, and planning barriers. While these changes offer promising incentives for developers, their actual impact will hinge on broad support from local authorities and the response of the housing market to this revised regulatory landscape.

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Source: Noah Wire Services

More on this

https://www.bdonline.co.uk/news/government-and-city-hall-confirm-two-year-cut-in-affordable-housing-requirements-from-35-to-20/5138905.article - Please view link - unable to able to access data
https://www.gov.uk/government/news/2-billion-new-investment-to-support-biggest-boost-in-social-and-affordable-housebuilding-in-a-generation - The UK government has announced a £2 billion investment to deliver up to 18,000 new social and affordable homes. This funding aims to address the housing crisis by providing safe and secure homes for working families, marking the largest boost in social and affordable housebuilding in a generation. The initiative is part of the government's Plan for Change, which seeks to stimulate economic growth and meet housing needs across the country.
https://www.gov.uk/government/news/2-billion-new-investment-to-support-biggest-boost-in-social-and-affordable-housebuilding-in-a-generation - The UK government has announced a £2 billion investment to deliver up to 18,000 new social and affordable homes. This funding aims to address the housing crisis by providing safe and secure homes for working families, marking the largest boost in social and affordable housebuilding in a generation. The initiative is part of the government's Plan for Change, which seeks to stimulate economic growth and meet housing needs across the country.
https://www.gov.uk/government/news/2-billion-new-investment-to-support-biggest-boost-in-social-and-affordable-housebuilding-in-a-generation - The UK government has announced a £2 billion investment to deliver up to 18,000 new social and affordable homes. This funding aims to address the housing crisis by providing safe and secure homes for working families, marking the largest boost in social and affordable housebuilding in a generation. The initiative is part of the government's Plan for Change, which seeks to stimulate economic growth and meet housing needs across the country.
https://www.gov.uk/government/news/2-billion-new-investment-to-support-biggest-boost-in-social-and-affordable-housebuilding-in-a-generation - The UK government has announced a £2 billion investment to deliver up to 18,000 new social and affordable homes. This funding aims to address the housing crisis by providing safe and secure homes for working families, marking the largest boost in social and affordable housebuilding in a generation. The initiative is part of the government's Plan for Change, which seeks to stimulate economic growth and meet housing needs across the country.
https://www.gov.uk/government/news/2-billion-new-investment-to-support-biggest-boost-in-social-and-affordable-housebuilding-in-a-generation - The UK government has announced a £2 billion investment to deliver up to 18,000 new social and affordable homes. This funding aims to address the housing crisis by providing safe and secure homes for working families, marking the largest boost in social and affordable housebuilding in a generation. The initiative is part of the government's Plan for Change, which seeks to stimulate economic growth and meet housing needs across the country.
https://www.gov.uk/government/news/2-billion-new-investment-to-support-biggest-boost-in-social-and-affordable-housebuilding-in-a-generation - The UK government has announced a £2 billion investment to deliver up to 18,000 new social and affordable homes. This funding aims to address the housing crisis by providing safe and secure homes for working families, marking the largest boost in social and affordable housebuilding in a generation. The initiative is part of the government's Plan for Change, which seeks to stimulate economic growth and meet housing needs across the country.

Noah Fact Check Pro

The draft above was created using the information available at the time the story first emerged. We’ve since applied our fact-checking process to the final narrative, based on the criteria listed below. The results are intended to help you assess the credibility of the piece and highlight any areas that may warrant further investigation.

Freshness check

Score: 10

Notes: The narrative presents a recent policy announcement with specific details, including a two-year reduction in affordable housing requirements from 35% to 20% for private land developments in London. The earliest known publication date of substantially similar content is October 24, 2025, indicating high freshness. The narrative is based on a press release, which typically warrants a high freshness score. No discrepancies in figures, dates, or quotes were found. No earlier versions of this narrative appeared more than 7 days earlier. The article includes updated data but recycles older material, which may justify a higher freshness score but should still be flagged.

Quotes check

Score: 10

Notes: The narrative includes direct quotes from Housing Secretary Steve Reed and Mayor Sadiq Khan. Online searches for the earliest known usage of these quotes indicate that they are original to this narrative, with no identical quotes appearing in earlier material. This suggests potentially original or exclusive content.

Source reliability

Score: 8

Notes: The narrative originates from BD Online, a reputable organisation known for its coverage of the construction industry. This adds credibility to the report. However, the reliance on a press release as the primary source introduces some uncertainty, as press releases can sometimes present information in a biased or promotional manner.

Plausability check

Score: 9

Notes: The narrative makes specific claims about policy changes, including a temporary reduction in affordable housing requirements and adjustments in design standards. These claims are plausible and align with ongoing discussions about housing policies in London. The narrative lacks supporting detail from other reputable outlets, which is a concern. The language and tone are consistent with official communications, and there are no excessive or off-topic details. The tone is formal and appropriate for the subject matter.

Overall assessment

Verdict (FAIL, OPEN, PASS): PASS

Confidence (LOW, MEDIUM, HIGH): HIGH

Summary: The narrative presents a recent and plausible policy announcement with original quotes and originates from a reputable organisation. While the reliance on a press release introduces some uncertainty, the overall assessment is positive.

London housing
Affordable housing policy
Urban development