In a letter to Mayor of London Sadiq Khan, Rayner announced she was withdrawing the London Plan introduced by the previous government to deliver 62,300 new homes in the capital each year, up from the current average of 37,200. It also called for the Mayor of London to identify areas in London where more homes could be built.
Rayner introduced a new Standard Method, which she said would produce an “ambitious but deliverable figure for London of nearly 81,000”.
She said withdrawing the previous direction would allow the government and Greater London Authority to take a “new partnership approach” on delivering homes in London.
Rayner said: “I know Mayor Sadiq Khan shares my commitment to tackle the housing crisis and boost economic growth to deliver real opportunities for Londoners.
“Our new approach will take more fundamental action and focus on a partnership approach to build the housing that London needs and unlock the city’s economic potential.”
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The New Homes Accelerator will also see the Ministry of Housing work with Homes England to speed up housing delivery and make money available for the English capital through the £150m Brownfield, Infrastructure and Land Fund.
This will be part of Labour’s wider plan to build one-and-a-half million homes over the next five years, as stated in its manifesto.
After the general election, Khan suggested that a “large chunk” of these promised homes should be built in the city.