Mayor of London to get new call-in and Green Belt powers

Under the changes, the Mayor will be able to review and call-in housing schemes of 50 homes or more where boroughs are minded to refuse – and City Hall will also become the decision-maker regarding Green Belt developments of 1,000sqm or more.

The Government also announced "time-limited, emergency powers" that will allow a fast-tracked planning process for sites with at least 20% affordable housing.

These sites will be accelerated subject to a requirement for 60% of the affordable homes to be for social rent.

Schemes which are consented under the new planning route which do not build out in a timely way will be subject to a “gain-share review mechanism ensuring delivery of more affordable homes – above the 20 per cent set out – where market conditions improve”, the Government added.    

The Greater London Authority will consult on the terms of the new time-limited planning route next month, with the aim of having guidance in place "at the earliest opportunity", according to the announcement.

The new time-limited planning route will be available until 31 March 2028, or the publication of the new London Plan. 

The changes also include a commitment to provide housebuilders with time-limited emergency relief from the Community Infrastructure Levy (CIL), which will apply to projects that commence after new regulations come into force and before 31 December 2028. 

The CIL will be available for qualifying schemes which commit to delivering at least 20% affordable housing, and additional relief available at higher levels of affordable housing. This proposal will also be consulted on.  

In addition, some design restrictions will be withdrawn, with developers instead handed more flexibility so long as homes have adequate passive ventilation, daylight and privacy, and avoid overheating, the Government added.   

It also confirmed an initial £322m to establish a City Hall Developer Investment Fund to  further support housebuilding.

The announcement comes as figures show housebuilding in London has slowed, with research published last week by residential development researcher Molior showing that the number of homes for private sale or rent under construction in the capital has fallen from 60-65,000 at any given time between 2015 and 2020 to 40,000 today.

It also predicted that this figure will fall by half again to 20,000 new homes under construction on 1 January 2027.

The Mayor of London, Sadiq Khan, said: “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." 

Housing Secretary Steve Reed added: “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.”

Adam Carey