Retirement home developers in judicial review of guidance from Mayor of London

A group of retirement housing developers have applied for judicial review of London Mayor Sadiq Khan’s affordable housing supplementary planning guidance.

They argue that the guidance unlawfully represents substantive new policy, as it was made without having gone through the independent examination process.

It introduced fast-track and slow track pathways for applications and those wishing to use the former must offer 35% on-site affordable housing.

Developers McCarthy & Stone, Renaissance Retirement, PegasusLife and Churchill Retirement Living have said that the nature of specialist housing for elderly people makes it impossible to provide affordable housing on the same site, which would shift all of their applications onto the slower path.

This would include a compulsory re-assessment of viability once 75% of homes in the development are sold, with a further affordable housing contribution potentially payable.

In a joint statement they said: “As the fastest growing demographic in the capital, it is vitally important that the housing needs of older Londoners are addressed.

“The current London Plan calls for 3,900 new units of retirement housing to be built each year in the capital. While delivery rates are already well short of this figure, few if any new retirement sites will come forward under the mayor’s new supplementary planning guidance and affordable housing process given the unique viability model of specialist retirement housing. This must be addressed.”

The developers have also said the guidance should have been subjected to a strategic environmental assessment of its social and economic impact and that it may breach equalities legislation since its effect would be to discriminate against specialist housing for elderly people.

A spokesperson for Mr Khan said: “The mayor’s new supplementary guidance was consulted on for three months and set out a clear approach that makes the planning system in London clearer, quicker and more consistent.

“City Hall is aware of the proposed claim and will be responding in due course.”

Mark Smulian