Mayor of London’s proposed planning framework falls well short of central government’s housebuilding target for the capital
The mayor of London has published the new draft London Plan, setting out how the city plans to deliver 558,000 new homes in the capital by 2037.
The proposed planning framework, released this morning, is focused on the dual objectives of building more affordable homes and delivering economic growth.
It includes a new system of affordability thresholds for new developments, sets out plans to build on significant chunks of green belt land, and urges developers to address overheating concerns with passive design solutions.
The 558,000-home, ten-year vision at the heart of the plan would require a significant increase in build rates, with recent delivery rates rarely getting much higher than 30,000 homes per year.
However, the targeted figure still remains well below the estimated housing need in the capital, set at 84,884 new homes per year by the government. A consultation document published by City Hall last year cited a similar figure of 88,000 new homes per year.
The draft plan said that Sadiq Khan was “very conscious” that the plan did not meet the government’s assessed need and said that while the planned identified “opportunities and capacity” to deliver homes up to and beyond that figure, this “requires investment, measures and delivery rates that can only realistically and properly be put in place beyond the ten-year timeframe.”
It said this would include previously proposed transport interventions to unlock higher density housing, including the West London Orbital (estimated to unlock 25,000 homes), Bakerloo Line Extension to Hayes (60,000) and further metroisation (30,000+).
One major aspect of the planning proposals is a new set of thresholds for affordable housing. In the previous plan, these had been set at 35% for the fast-track route.
However, an emergency package agreed between Khan and central government last year saw these cut to 20% as a time-limited measure to unlock stalled sites. This has recently been subject to a legal challenge by a number of central London authorities.
Today’s publication sets out plans for three bands for local authorities, each of which will be subject to different thresholds.
The 12 mostly central London authorities in band A will return to a 35% requirement. These are Wandsworth, Lambeth, Southwark, Hammersmith and Fulham, Kensington and Chelsea, Westminster, Camden, Islington, Hackney, Tower Hamlets, the City of London and Richmond upon Thames.
Tower Hamlets mayor Lutfur Rahman, who led the legal challenge against the drop in affordability thresholds, said today’s announcement “demonstrates the impact of our legal challenge” but “does not go far enough”.
Meanwhile, eight councils - Merton, Lewisham, Greenwich, Newham, Waltham Forest, Haringey, Brent and Ealing - fall into band B, which will be subject to a 25% requirement.
The remaining authorities in Greater London, mostly falling into its suburban fringes, will be subject to a 20% location band.
The requirement is set at higher levels of 50% for green belt land, 40% for public sector land and 35% for industrial land.
Collectively, the plan aims to deliver 219,940 low-cost rent and 119,940 intermediate homes by 2037.
As announced last year, the plan will also allow limited release of green belt land, where developments meet specified requirements, including the aforementioned affordability criteria.
The plan makes provision for around 56,000 new homes and around 350ha of industrial land through site allocations and green belt release.
An annex to the draft plan identifies 50 well-connected train stations within the green belt that could provide suitable locations for greater residential development.
The plan also encourages developers to use design features such as shading, natural ventilation and building orientation to help buildings stay cool passively.
“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,” said Sadiq Khan.
“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.”
The draft is nearly half the length of the 2021 document, with the mayor’s office saying it had been “streamlined to reduce the burden on developers while retaining vital quality standards”.
Londoners can take part in a consultation on the plan, which begins today and runs to 15 October 2026. The finalised Plan will run from adoption to 2046-7.
Sector reaction to the draft London Plan
Fiona Fletcher-Smith, group chief executive of L&Q
“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.”
James Stevens, director of cities at the Home Builders Federation
“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.”
Clare Miller, group chief executive, Clarion Housing Group
“Every day we see what London’s housing shortage means for the families on our waiting lists, with many spending anxious years hoping for a stable, affordable home, so we welcome a more flexible approach to viability that will get more of those homes built for those who urgently need them.
“No single organisation can meet London’s housing need alone, and Clarion looks forward to deepening our partnership with the Mayor and boroughs across the capital to build the next generation of social and affordable housing.”
Craig Carson, regional managing director, Barratt London
“It’s great to see a slimmed-down, more strategic London Plan, with such a positive focus on housing delivery. The draft Plan rightly acknowledges the reality that space in the capital is limited, and that making the best use of land – both by bringing forward new sites and unlocking the potential of existing ones – will be critical.
“A more strategic spatial approach is equally welcome, and clearer place designations should help create greater certainty and support delivery.
“Given the significant increase in the cost of delivering housing, it is encouraging to see a considered and thoughtful approach to affordable housing requirements, with different targets for different types of development and different parts of London, reflecting the varied circumstances across the capital.
“As the consultation progresses, it will be important that policymakers continue to engage with those responsible for delivering homes on the ground, to help make this the strongest possible Plan and ensure it maximises the delivery of the homes London needs.”
Lutfur Rahman, executive mayor, Tower Hamlets
“Today’s announcement demonstrates the impact of our legal challenge to stop the Mayor of London slashing the affordable housing quota from 35% to just 20%. Just weeks after we launched legal proceedings, City Hall has made this concession, accepting the fundamental premise of the arguments we have advanced in our Judicial Review claim, brought jointly with Hackney and Lewisham councils and backed by seven councils across London.
“City Hall is now recognising the benefits of allowing councils to set ambitious affordable housing targets that reflect local circumstances and acknowledging the high levels of affordable housing already being delivered by boroughs such as Tower Hamlets. This is precisely what would be prevented by a blanket cut to 20%.”
“However, these proposals do not go far enough. Without any clear justification, City Hall would still press ahead with its devastating ‘emergency measures’ until 2028. That would mean losing thousands of affordable homes over the next two years - homes which, once lost, we will never get back, while hundreds of thousands of families languish on housing waiting lists and one million Londoners are trapped in overcrowded or uninhabitable accommodation.
“We remain ready to engage constructively with the Mayor of London and the Greater London Authority. We will continue to stand up for the principle that major planning policy changes must be subject to proper scrutiny, meaningful consultation and democratic accountability. At a time when one in every 21 children in London is homeless—at least one homeless child in every classroom—we cannot stand by while developers’ profits are prioritised over the genuinely affordable homes our communities so desperately need.”
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