Sadiq Khan gets go-ahead to slash affordable housing ratio to 20% to tackle London housing crisis

"London mayor Sir Sadiq Khan has been given permission to slash the amount of affordable homes in new developments from 35 per cent to 20 per cent. A note from the Ministry of Housing, Communities and Local Government said the emergency intervention would be time-limited and run until March 2028. It is being brought in after more than a third of London boroughs recorded zero housebuilding starts in the first quarter of this year."

"The current situation was described as a perfect storm due to the impact of the pandemic, high interest rates, spiralling construction costs, regulatory red tape and wider economic conditions. City Hall hopes this will encourage developers to roll up their sleeves and quickly bring forward new housing schemes. Sir Sadiq will get extra powers to intervene in schemes that boroughs are minded to oppose - and an additional 322m in housing funds, on top of more than 11.7bn already earmaked for social housing over the coming decade."

"Proposed developments with at least 20 per cent affordable housing will be fast-tracked compared with the mayor's previous requirement for 35 per cent to be affordable to qualify for his fast-track procedure. Developers will also be exempt from paying a community infrastructure levy - effectively a local tax levied on new schemes that helped to fund the building of Crossrail, now known as the Elizabeth line."

The mayor of London has been granted permission to lower the affordable housing requirement on new developments from 35 per cent to 20 per cent until March 2028. The emergency measure follows a sharp slowdown in starts, with over a third of boroughs recording zero housebuilding starts in the first quarter. The package gives the mayor extra powers to intervene in opposed schemes, provides an additional £322m for housing and fast-tracks qualifying proposals while exempting developers from a community infrastructure levy. The London Renters Union criticised the cut to targets. A six-week consultation is planned.

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