Khan and government confirm emergency measures to kickstart London housebuilding

In a joint announcement, housing secretary Steve Reed and Khan said the intervention was designed to combat pressures that had caused housing delivery to plummet across the capital. This is as 4,522 social and affordable homes were started in London in 2024-25, down significantly from 26,386 starts reported in 2022-23.

The package includes a new fast-track planning route for schemes delivering at least 20% affordable housing, alongside temporary relief from the Community Infrastructure Levy (CIL) to ease financial pressure on developers.

Additionally, the removal of certain Greater London Authority density guidelines is expected to enable more homes to be delivered on already allocated sites.

The government is also legislating to expand the mayor’s planning powers to call in and determine applications of 50 homes or more where boroughs are minded to refuse. This change is due to come into force in May with the intention of reducing delays and providing greater certainty for developers.

Khan said: “Building more social and affordable homes is a top priority and I’m taking the tough decisions to get these much-needed homes built, including working closely with government to finalise this temporary emergency package, which will unlock stalled sites across London.”

Jordan McCay, policy officer at the British Property Federation, said the package was a positive step, “but not ambitious enough to unlock the scale of housing delivery needed in the capital”.

Meanwhile, Paul Rickard, chief executive of Pocket Living, said the emergency measures were “both welcome and necessary”.

He added: “The scale of the housing delivery challenge facing London cannot be underestimated and it is positive to see that both the government and the mayor have reflected this in the final proposals.”

Nicholle Kingsley, partner, planning, real estate, at Mishcon de Reya, said: “This package is a positive and pragmatic response to the viability pressures that have significantly slowed housing delivery across London. In particular, the ability for existing consents to benefit, alongside a reduced CIL liability, should make a difference at the margins.”

However, she highlighted concerns that some of the package interventions were too temporary and limited in nature for what was likely to be a much longer-term and wider viability challenge. “With a 2028 application deadline and delivery milestones built in, there is a risk they won’t fully align with market realities while values remain subdued and costs and levies continue to rise,” she said. “Short-term interventions alone are unlikely to unlock the scale of delivery London needs.”