A rare show of alignment between central government and City Hall has produced a package of planning reforms designed to restart housing delivery across the capital. The measures – including a temporary cut in affordable housing requirements and new CIL relief – aim to improve scheme viability and unblock stalled developments. With London central to the government’s target of 1.5 million new homes this parliament, the proposals signal a more pragmatic and coordinated approach to boosting supply.
- Affordable housing requirement temporarily reduced to 20%
- Mayoral intervention threshold lowered from 150- to 50-home schemes
- Design rules eased on dual aspect and cycle storage standards
- Consultation runs for six weeks from November, with changes likely in early 2025
- 20% affordable housing rate applies to permissions secured before 31 March 2028
- Increased planning activity expected as developers seek to benefit from new measures
Original article source: Property Week
For London’s property market, this coordinated reform effort feels long overdue. Years of under-delivery have left developers, investors, and local authorities grappling with tight margins and a slow-moving planning environment. By temporarily reducing affordable housing requirements and introducing CIL relief, the government and mayor are signalling a pragmatic willingness to prioritise delivery over idealism – a shift many in the sector will welcome.
Improved viability could unlock a wave of projects that have been on hold due to cost pressures and changing financial conditions. For schemes already in the pipeline, these measures may provide the margin needed to move from the drawing board to site, particularly in zones where land values and build costs have been most challenging. However, much will depend on how swiftly the proposals move from consultation to implementation. Developers will be watching closely for clarity in early 2025.
The reduction in mayoral call-ins and relaxation of certain design standards also suggest a more streamlined approach to decision-making. This could, if properly resourced, help to relieve bottlenecks in the approval process – though planning teams across London are likely to face an immediate surge in amendment and resubmission requests as developers seek to take advantage of the reforms.
London’s leadership recognises the urgency of restoring momentum to housing delivery. While the window for reduced obligations is finite – closing in March 2028 – the policy signals renewed political alignment and an environment more supportive of viable, deliverable schemes. After years of policy friction, this collaborative step may mark a turning point toward a steadier, more constructive period for the capital’s development market.
