The Mayor of London can now override planning decisions on developments of more than 50 homes, in signs Sadiq Khan is taking more drastic actions to boost housebuilding.
City Hall can also become the decision-maker in developments of 1,000sqm or more on green belt land.
The proportion of homes that need to be ‘affordable’ have been cut to 20%, down from 35%.
It was already publicly known the Greater London Authority was weighing up whether to make that change, which it’s claimed could cut six months from the planning process.
Faraz Baber, chief operating officer at planning consultancy Lanpro, said: “Perhaps unsurprising given the urgency, time is at the centre of this document: the time-limited planning route which reduces the 35% affordable housing requirement to 20% for fast track applications to breeze through will be available until 31 March 2028; or the publication of the revised London Plan, whichever is earlier.
“And, the planning tax, called the community infrastructure levy (CIL) will see a 50% relief, presumably supplemented by central government if the planning consents are commenced by the end of December 2028.
“It will be interesting to see how London looks in March 2028 but in the rush for sites to be commenced, I anticipate many more holes in the ground and perhaps fewer completed schemes than these emergency measures intend.
“And in reality these timescales are already compromised: by local elections which will enforce a period of purdah on planning decisions, and by a mayoral election which may result in a new policy direction.”
Other changes are:
• Earmarking £322 million to establish a City Hall Developer Investment Fund
• Consultation on time-limited emergency relief from the Community Infrastructure Levy (CIL) where this is necessary to unlock development, which will apply to projects that commence after the new regulations come into force and before 31 December 2028.
• Some design restrictions will be withdrawn, with developers instead handed more flexibility so long as homes have sufficient passive ventilation, daylight and privacy, and to avoid overheating.
• Flexibility in residential cycle storage requirements to reflect demand and account for the rise of dockless bikes and e-scooters in London.
Richard Beresford, chief executive of the National Federation of Builders (NFB), said: “The government inherited a set of policies which made many housing projects unviable, so supply was always going to take a hit.
“We hope that today’s announcement is the first step in understanding the costs and blocks to development.”
There were just 2,148 housing starts in the first half of 2025, with a third of boroughs recording no housebuilding starts in the first quarter of the year.