‘Emergency’ planning package to boost London’s housebuilding delayed

A package of policy measures to boost London’s ailing housebuilding market has now been delayed until at least the end of the month, Housing Today understands.

According to sources, the government and City Hall have been locked in discussions about short-term measures to make it easier to deliver housing in the current environment.

An announcement of measures, including a reported lowering of affordable housing requirements to around 20%, was widely expected to be announced on Wednesday. It is believed the package may also include changes to design requirements.

However, due to wranglings between the Ministry of Housing, Communities and Local Government (MHCLG) and the Greater London Authority about the politics, details and procedure around the move, the announcement has now been delayed until at least the end of October.

Housing Today understands the government is keen to announce the measures ahead of the Office for Budget Responsibility’s report, which contains economic growth forecasts and will be published alongside the budget on 26 November.

>>See also: Reduced affordable housing targets in London would be welcome but must be first step in wider reform

Currently sites in London which are privately owned are expected to deliver 35% affordable housing, while the threshold for public sites is 50%.

But many housebuilders are finding it unviable to provide these levels in their developments currently, particularly given other cost challenges, such as those around building safety, and a subdued housing market.

The Home Builders Federation, which has called the affordable housing requirements ‘unrealistic,’ in September warned housing delivery in London is in “major crisis” and said the government’s housing targets are unachievable without intervention. It pointed to figures showing a downturn in starts, permissions and energy performance certificates issuances.

It is believed the policy announcement could come from MHCLG in the form of a written ministerial statement.

A spokesperson for the Mayor of London said: “The disastrous inheritance from the previous Government has left national housebuilding on its knees. The Mayor is doing everything in his power to deliver more homes of all tenures, taking hard decisions including actively exploring development on the green belt.

“While the impact of this legacy is being felt acutely in London due to rising construction costs, wider economic pressures and delays from the Building Safety Regulator, the Mayor is determined to work hand-in-hand with the Government to support their ambition to get Britain building again.”

MHCLG was approached for comment.