By Henry Courtier, Planning Director at Pegasus Group 

The Greater London Authority has published a wide-ranging package of temporary planning and funding measures to boost the capital’s housing delivery. The reforms take direct aim at kickstarting stalled housing schemes by addressing viability challenges that have slowed delivery – particularly for affordable housing. 

Here is a breakdown of the most important changes that developers, landowners, and planning teams need to understand. 

 

New 20% Affordable Housing Fast-Track Route 

Arguably the most transformative measure is a new temporary fast-track planning route for projects delivering at least 20% affordable housing on private land.  

For eligible private-land schemes, this means: 

  • No viability assessment is needed for schemes with at least 20% affordable housing and a 60:40 split between social rent and intermediate tenures. This should bring about significant cost and time savings. 
  • Grant funding is available on units above a 10% affordable baseline. 
  • The new time-limited planning route will be available for planning applications that have been validated by a local planning authority by 31 March 2028. By this time, the new London Plan is expected to be adopted. This time-limited planning route is available to existing schemes that have stalled due to viability.  
  • Schemes following the time-limited planning route are subject to an Early-Stage review mechanism just like a scheme following the London Plan’s Fast Track Route. This review is triggered when substantial implementation (typically first floor level) has not been reached within 30 months. 
  • It will not apply to Grey or Green belt land, Purpose Built Student Accommodation (PBSA), or Large-Scale Purpose Built Shared Living (LSPBSL) development, nor schemes involving demolition of existing affordable housing, including estate regeneration schemes. 

 

50% Borough CIL Reduction for Eligible Schemes 

To boost viability, the Government has confirmed a 50% reduction in Borough-level Community Infrastructure Levy (CIL) for qualifying schemes.  

This reduction takes aim at unblocking stalled mid-to-large schemes, where high CIL liabilities have affected viability. Developers must provide summary residual appraisal evidence, but it’s a much lighter-touch process compared to a full viability assessment, accompanied by statutory declarations to reassure boroughs. 

The relief is: 

  • Applicable where at least 20% affordable housing is delivered 
  • Available only on brownfield sites 
  • Dependent on schemes exceeding a £500,000 CIL liability 
  • Available to projects commencing before 31 March 2030 

 

More Flexible Design Guidance to Increase Density 

Several changes to current London Plan Guidance and Policy D6 in the London Plan will remove prescriptive requirements that limit housing density. 

   Dual Aspect 

More flexibility in the design and mix of single and dual aspect dwellings, so long as homes have adequate passive ventilation, daylight and privacy, and avoid overheating.  

   Dwelling per Core 

Removal of the cap of 8 residential units per core floor. With this change, decision-makers should be supportive of designs that allow for more than 8 residential units per core per floor, as long as the development continues to meet the requirements of the Building Regulations. 

   Cycle Parking Reductions 

For dwellings, PBSA, and LSPBSL, the minimum long stay standards in Table 10.2 of the London Plan and the cycle storage benchmark in Table 3.2 of the LSPBSL LPG no longer apply. Instead, a simplified borough-tiered standard sets lower cycle parking ratios for homes, PBSA, and shared living developments. Higher provision may be required if boroughs present compelling local evidence. 

With these changes combined, developers should now have more meaningful opportunities to optimise layouts and reduce build costs. 

 

Expanded Mayoral Planning Powers 

The Mayor of London will soon have significantly enhanced powers to intervene in planning decisions, including: 

  1. The ability to call in any residential scheme of over 50 homes that boroughs are minded to reject. 
  2. Calling in powers for applications of 1,000 sqm or more on Green Belt and Metropolitan Open Land. 
  3. Expedition of the Mayoral call-in process in certain areas, without the need for a full hearing. 
  4. Greater freedom to make Mayoral Development Orders that grant permission directly for strategic schemes. 

 

£324m City Hall Developer Investment Fund 

The GLA has also launched a new City Hall Developer Investment Fund, with £324m to be allocated towards stalled sites capable of delivering homes by summer 2029. Funding models will vary, but the intention is to unlock development quickly and recycle returns into future projects. 

 

What the Measures Mean for London Housing 

On the whole, the emergency package is one of the more ambitious attempts in years at injecting some adrenaline into London’s housing delivery framework. It is clear that the GLA and Government want boroughs and developers to use this window of opportunity to get stalled schemes moving. 

“The new affordable housing, grant and CIL measures are a welcome step and it is helpful that they can be applied to existing permissions. It is likely that a number of schemes will be able to make the new fast-tracked approach work and move towards restoring housing delivery. However, for many, the scale of viability challenges will remain too great, and the Viability Tested route will continue to be the best way to secure a deliverable permission.” 

 

If you would like to discuss these measures further, please contact: