The fast-tracked process will be available to sites with at least 20% affordable housing, and 60% of these homes must be social housing.
The government said this would address “squeezed viability” through the removal of design guidance that “constrains density” and giving developers temporary, time-limited emergency relief from the Community Infrastructure Levy (CIL) where necessary.
The relief will apply to projects that start after the new regulations come in and before 31 December 2028. The CIL will be applied to qualifying schemes that commit to delivering at least 20% affordable housing and additional relief will be available at higher levels of affordable housing. This proposal will be consulted on.
Developers will have to work under the conditions that new homes will be delivered quickly, otherwise they will have to share their profits with local boroughs to ensure the development of affordable homes.
The mayor will also be given new powers to fast-track housing, such as the ability to review and call in housing schemes of 50 homes or more where councils tend to refuse. City Hall will also be given the authority to make decisions on developments of 1,000sqm or more on green belt.
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The Greater London Authority will consult on the terms of the new time limited planning route for six weeks, starting from November, with a view to publish guidance imminently. The new route will be open until 31 March 2028 or the publication of the new London Plan, whichever is sooner.
This will allow the mayor to speed up the call-in process in some cases without the need for a full hearing process, which is expected to cut up to six months from the planning process. Further, the mayor will be given more freedom to deliver Mayoral Development Orders, which will help unlock more homes by removing the veto from local authorities.
In addition to this, the government has confirmed an initial fund of £322m to set up a City Hall Developer Investment Fund to increase housebuilding. This will be on top of the £39bn previously announced for the Social and Affordable Homes Programme.
‘Urgent action’ is needed
Steve Reed, Housing Secretary, said: “Getting spades in the ground in London is crucial if we want to see the biggest increase in social and affordable housing and meet our target of delivering 1.5 million homes in our Plan for Change.
“I have worked closely with the Mayor of London to give the capital the shot in the arm it needs to ensure more Londoners have an affordable home of their own.”
Sadiq Khan, the Mayor of London, added: “Affordable housing has always been a top priority for me as mayor. We have started more new council homes in London than at any time since the 1970s and, prior to the pandemic, completed more new homes in London than any time since the 1930s. But there’s now a perfect storm facing housebuilding in London due to a combination of high interest rates, the rising cost of construction materials, the impact of the pandemic and ongoing consequences of Brexit. All of this means we are now in the midst of the most difficult period for housebuilding since the global financial crash.
“Urgent action is required, which is why I’ve been working with the government on this package of bold measures. I grew up in a council house, so I know the importance of social and affordable homes. I’m not willing to stand by while the supply of affordable housing for Londoners dries up. With these significant new powers and the initial £322m of funding from the government – plus the short-term emergency action to get more investment flowing into affordable housing – I’m confident that we can kick-start housebuilding and deliver more of the affordable homes Londoners badly need.
“I will always do everything I can to accelerate the delivery of genuinely affordable homes as we continue to build a better, fairer London for everyone.”
Speeding up the delivery of high rises
These changes come after moves made by the Building Safety Regulator (BSR) and the Ministry of Housing, Communities and Local Government (MHCLG) to speed up decision-making around building control applications for high-rise buildings, with a view to clear historical new-build applications in England by the end of the year.
The government said these changes were already in progress, with most applications now going through the newly established Innovation Unit, currently meeting or exceeding the 12-week average target.
Andy Roe, BSR chair – who was appointed in June as part of reforms to accelerate housebuilding – said: “After listening and learning, the regulator, with the support of MHCLG, has acted decisively to speed up its application processes for new high-rise residential buildings.
“We are already starting to see positive impacts and our continued focus on further improvements and engaging with applicants will ensure we can support essential construction, without compromising the safety standards needed to keep people safe in their homes.”
