Consultation launched on boosting London housing

Developments of 50 or more homes “where boroughs are minded to refuse” fall under the new potential strategic importance category.

Related topics:  London,  Housing
Property | Reporter
1st December 2025
construction 665

The government has opened a consultation on two of its announced initiatives aimed at supporting housebuilding in London.

The first part of the consultation seeks input on the Ministry of Housing, Communities and Local Government’s (MHCLG) proposal to provide temporary relief from the Community and Infrastructure Levy (CIL) for new schemes that include at least 20% affordable housing, a reduction from the previously expected 35% in the capital.

This part of the consultation will cover:

The rationale for emergency CIL relief in London

Which developments will qualify for the relief

How the relief will be accessed and administered

The next steps the government plans to take to implement the relief

The second part invites comments on proposed changes to the mayor of London’s planning powers. MHCLG intends to make permanent adjustments to the mayor’s existing planning powers to strengthen oversight of planning applications considered potentially strategic.

This includes:

A new category for applications of potential strategic importance, subject to a streamlined process, for developments of 50 or more homes, “where boroughs are minded to refuse”

Expanding the mayor’s call-in powers to include developments of more than 1,000 sqm within green belt or metropolitan open land

In addition, as part of the package announced on October 24 to accelerate housebuilding, MHCLG plans to remove certain design restrictions on new housing in London. Flexibility will be allowed provided homes have adequate passive ventilation, daylight, and privacy.

MHCLG said it recognised the “significant challenges” housebuilding in London had faced in recent years, including “high interest rates, spiralling construction costs, regulatory blockers and wider economic conditions.”

The consultation will close on January 22.

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