CIH responds to emergency measures aimed at boosting housebuilding in London

The Ministry of Housing, Communities and Local Government has announced new emergency measures in an attempt to boost housebuilding in London.

The package of measures, agreed between housing secretary Steve Reed and London mayor Sadiq Khan, includes a time-limited planning route, temporary levy relief for developers, new powers for the mayor to review and call in housing schemes, and £322m of initial funding for a City Hall Developer Investment Fund.

The government says the new measures are a response to what it calls a “perfect storm” of high construction costs, high interest rates, "regulatory blockers" and other factors.

‘Must be temporary'

Responding to the announcement, CIH chief executive Gavin Smart said: "We know that London is currently experiencing acute and specific challenges with new developments and understand why the secretary of state has brought in these changes to support London. However, this must be a temporary measure and cannot set a precedent for affordable home targets more widely.

"We urge the government to set clear timelines and guidelines for reverting back to the agreed 35-per-cent-affordable-homes target in London, particularly as there is an overwhelming need for social and affordable housing in the city.”

He added: "It is crucial that we continue to build the homes we need to tackle the housing crisis at its core and address the record numbers of households living in temporary accommodation. We welcome the government’s commitment to boosting affordable housing through the 60-per-cent target in the upcoming Social and Affordable Homes Programme."

In detail 

The package announced by the government includes time-limited, emergency measures that it says will make sites more viable and incentivise developers to build as the result of a new fast-tracked planning process for sites with at least 20 per cent affordable housing. These measures are subject to consultation. 

The mayor will receive new powers to fast-track housing, including the ability to review and call in housing schemes of 50 homes or more where boroughs are “minded to refuse”. City Hall can also become the decision-maker regarding developments of 1,000 sq. m. or more on green belt land, the government says.

This new approach to planning will also allow the mayor to expedite the call-in process in certain cases, without the need for a full hearing process. The government says this will cut down the planning process by up to six months.

The mayor will also receive greater freedom to deliver Mayoral Development Orders, which the government says will help unlock more homes by removing the veto from local authorities. 

Finally, the government has confirmed an initial £322 million to establish a City Hall Developer Investment Fund, which it says will allow the mayor to “further increase housebuilding”.