Mayor in ‘furious row’ with developers over housebuilding rules

Mayor of London Sadiq Khan insists measures to boost new build figures in the Capital will help, despite claims from housebuilders they are unworkable.

London Mayor Sadiq Khan (main picture) is in a “furious row” with developers over delays to measures designed to kickstarting housebuilding.

The Government announced last year it is to cut the affordable element of each development from 35% to 25%, and to relax some of the design requirements.

The Capital’s new-build sector has collapsed over the last decade, falling by as much as 84% as construction costs soar, new-home sales slump and contractors go bust.

But now the final proposals are not expected to be published until next month, and the changes not to apply until June. And planning approval must be granted by March 2028.

This has sparked a row between Khan and developers who say the plan is unworkable, The Times reports.

The Labour Government has set an ambitious target of 1.5 million homes to be built nationally by 2029 despite many industry experts warning it is not achievable.

The timelines are incredibly challenging.”

Steve Turner, Executive Director at the Home Builders Federation, said: “The timelines are incredibly challenging and will inevitably limit the impact they have, not least because they have not yet been formalised and implemented.”

Last month, analysis by residential development research firm Molior found construction began on just 5,547 new private-sector homes in London last year, down from 33,782 in 2015. This is despite London needing around 88,000 new homes a year.

A spokesperson for the Mayor said: “The new measures will directly remove obstacles to construction, with a new fast-tracked planning process, the removal of design guidance that constrains density, and temporary relief from development levies.

“The Mayor will also be handed new powers to fast-track housing, including reviewing and calling-in housing schemes of 50 homes or more where boroughs are minded to refuse.

“The Mayor makes no apology for wanting to see more action on housebuilding as a matter of urgency. He has just announced that he is making £1.5 billion available in very low-cost interest loans for housing associations, to help accelerate the construction of new, affordable and social housing across the Capital.

“Housebuilding in the Capital and across the country continues to be held back by a perfect storm caused by the disastrous legacy of the previous government, high interest rates, the impact of the pandemic, the rising cost of construction materials, Building Safety Regulator delays, and the hugely damaging impact of Brexit.”

Last week, Housing Minister Matthew Pennycook admitted Labour’s plans to build 1.5 million new homes will hit property prices.

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