Khan speeds up planning to combat London housing crisis

Khan speeds up planning to combat London housing crisis

The Mayor of London, Sadiq Khan, has today set out new planning rules to speed up the building of more affordable housing, alongside plans for how an investment of £3.15bn will support 90,000 new affordable homes in the capital.

The Mayor's new funding programme details how he will use the investment - the biggest housing deal ever secured by City Hall - to support new affordable housing in the capital over the next five years.

It is launched on the same day as new planning guidance, designed speed up development and boost affordable housing numbers.

Previous national rules on affordable housing investment were rigid, including no investment at all for mainstream low-cost rented housing. Following negotiations with government, new rules mean investment in London can now be spent on a mix of homes for low-cost rent and affordable homeownership – allowing the Mayor to meet the needs of more Londoners.

Sadiq has been clear there is not a 'one size fits all' approach to affordable housing in London, as the city needs a balanced mix of homes to rent and buy.

The 90,000 affordable homes will be a mix of low-cost rent, shared ownership and London Living Rent, which is based on a third of average household incomes in each borough.

Most homes in the Mayor's programme will be delivered by housing associations, with the condition that their plans must include a minimum 50 per cent affordable housing, with some partners enabled to deliver at least 60 per cent.

The Mayor is also today launching new planning guidance, setting out for the first time an innovative approach both to speeding up decisions in the planning system and increasing the levels of affordable housing.

Sadiq's Supplementary Planning Guidance (SPG) is the first step to raising affordable housing levels from the low level of 13 per cent given permission that he inherited from the previous Mayor. The guidance has been developed since the Mayor took office in May through extensive discussions with councils and the housing industry.


Sadiq Khan, said: “London is in the midst of a housing crisis, with thousands of Londoners priced out of a city they call home. I have been clear that fixing the housing crisis will be a marathon and not a sprint, but I am determined to lead from the front and get on with building genuinely affordable homes for Londoners to rent and buy.

These announcements today demonstrate real progress on the long road towards fixing London's housing crisis.

The record-breaking investment I have agreed with government means we can start building a range of different affordable homes to suit Londoners' needs. Together with my new planning guidance, we can begin to boost the number of homes built in London and move towards a long-term strategic goal of half of all new homes being genuinely affordable.”

Planning guidance, subject to a three-month consultation period, is just one in a range of measures the Mayor is using to deliver affordable housing in London. Together with his record funding package, announced in last week's Autumn Statement, Sadiq has been clear that he expects public land to deliver as much affordable housing as possible and is leading by example with sites owned by Transport for London.

John Dickie, director of policy and strategy at London First, said: “It's hugely encouraging to see the Mayor's continued focus on building the homes London's workers and families so urgently need. Giving greater clarity and guidance to housebuilders is a welcome step as we work towards a dramatic increase in housing and start building the 50,000 new homes London needs each year.”

Ian Fletcher, Director of Policy at the British Property Federation, said: “The GLA has led the field in seeking to have a planning policy on Build-to-Rent and this latest guidance is immensely helpful to the sector and the Boroughs with which it works. When you are trying to do something new in housing inevitably you need to develop understanding, and the Mayor, his Deputy and team have wanted to be at the forefront, working with planners and investors to cast a sensible planning policy.

What you want as a developer or investor, such as a pension fund, is clarity and understanding that rental homes are different to those for-sale, which this guidance delivers. The sector wants to deliver tens of thousands of quality rental homes for Londoners, and those at discounted market rent, in a tenure blind manner. Recognising the sector and how it works in this guidance is a big help.”

Mark Allnutt, Greystar's Managing Director, said: “We welcome the news that London is receiving a £3.15bn allocation for affordable housing, and that the rules have been relaxed to allow this to be used across a wider range of housing types for rent as well as sale.

London not only needs more rental accommodation, but more of this needs to be designed, built and managed for that purpose. Greystar rental communities offer first class apartments and amenities to suit people at different stages in their lives across a wide range of rent levels.”

David Montague, Chair of the G15 – representing London's largest housing associations - said: “The Mayor has secured the very best deal for Londoners. He has listened to housing associations and given us the flexibility we asked for. Now we must get on with the job of building the homes that London needs.”

Geeta Nanda, CEO of Thames Valley Housing Association, said: “The settlement for London is a great success and allows us the flexibility to build a range of homes for the very many people who are looking to us to deliver the housing solution. Not only is this important for those with dire housing needs but also for the economy. London needs its workers to be well housed for the economy to grow. At TVHA we look forward to working with the GLA to help plug the gap.”

Killian Hurley, Chief Executive at Mount Anvil, said: “Mount Anvil are incredibly pleased with the Government's plans to boost the number of new homes through the injection of £1.4bn into affordable housing schemes, alongside a further £2.3bn Housing Infrastructure Fund.

This country faces a housing shortage – across every tenure with too few homes being built to meet the housing needs of the nation. This commitment of funds will help the industry deliver homes that London so desperately needs. At Mount Anvil, we understand that the industry has to build better homes as well as more homes, and look forward to working alongside our housing association partners to deliver these.”

Join our mailing list:

Leave a comment



Our Next Event

Buy-to-Let Roadshow July 2017

Buy-to-Let Roadshow July 2017

Newcastle - 18/07/2017

Bolton - 19/07/2017

Derby - 20/07/2017

Reading - 21/07/2017

Register now

Latest Comments

SecomTech
SecomTech 22 Jun 2017

AT Last...This was discussed years ago and there was a move towards landlords registering their bad tenants on a database..(can't remember where) It seems a logical step though our leaders will probably...

view article
Bertrand
Bertrand 02 Jun 2017

How about the Welsh Govt introducing a scheme to protect landlords against "rogue" tenants who are then taken to court for criminal damage to the properties they trash. Pretty unlikely I suspect and politically...

view article
AmberMorris
AmberMorris 25 May 2017

"Please don't pick a novelty tune-playing doorbell. They're not 'fun'. They're stupid." Laughed a lot to this. It's actually true, though.

view article
Oliver Conway
Oliver Conway 18 May 2017

Making a neat inventory is a good idea, but if the seller is not willing to provide it, can the buyer demand it?

view article
Bertrand
Bertrand 17 May 2017

First step to nationalisation of the private rented sector IMHO. Nanny state poking their noses into things yet again. I object, as a decent landlord, sometimes having to deal with some pretty awful tenants,...

view article
Izzy
Izzy 16 May 2017

This is such a great a post. I love the detail you've gone into. It's a very useful article for helping those who are looking at deciding which sector they would like to go into! When I first started investing...

view article
paul burnham
paul burnham 30 Apr 2017

Jeremy Corbyn's pledge that a Labour government would build 500,000 new council houses must electrify the general election campaign. Reliance on markets and the profit motive has brought huge housing-related...

view article
CommercialTrust
CommercialTrust 28 Apr 2017

Sadiq Khan?s announcement of an online database of landlords and letting agents who have been convicted of housing offences, appears on face value to be a variation of the already implemented Database

view article
warren
warren 26 Apr 2017

You're very welcome Mary! Glad you enjoyed them :)

view article
Mary Ward
Mary Ward 26 Apr 2017

Thank you for the wonderful ideas. First impressions can make or break a deal. It's sadly that many homeowners drop the kerb to create an off-street parking space.

view article
Tony Gimple
Tony Gimple 14 Apr 2017

I'm not at all surprised that so many landlords are still confused about what the tax changes really mean and how it will affect them. In particular, the blind rush to incorporation is leaving landlords...

view article
MH
MH 13 Apr 2017

You are right that the bank holidays are going to be spoiled in looking for the properties. But people who want to sell their property and looking for the better relocation, they can get benefits of this...

view article

Related stories

More articles from Property

Buy-to-Let Roadshow
July 2017

18th-21st July

4 days
7 specialists
4 locations
Free to attend

Click here to register now