Emergency housebuilding package for London ‘imminent’ as deputy mayor confirms affordable housing reduction

In October, the government set out plans for a new “fast-track” planning route with a target of just 20% affordable homes, replacing the current threshold of 35%. This new route will only be available until March 2028.

Other short-term proposals aimed at increasing development in the capital include allowing developers to claim relief on the Community Infrastructure Levy (CIL), as well as access grant funding for around half of the affordable homes in a scheme.

Mr Copley told Inside Housing that following a consultation which closed in January, there will be “no changes to the fundamentals” around the 20% emergency threshold and CIL relief.

He continued: “We do anticipate that there will be, if you like, some changes under the bonnet to make sure that we maximise the impact of that. 

“We’re still finalising that with the government, but we will be able to say very, very soon what those are.”

On the timeline, he added: “We’re rapidly coming to the conclusion of that process. There’s been very fast and close working between [the Greater London Authority] and [Ministry of Housing, Communities and Local Government], really taking on board what we’ve heard through that consultation

“We heard very clearly, while the package overall was welcomed, there were a lot of comments around timescales and milestones. For example, comments around how exactly the review mechanisms work and things like that. We’re taking that on board. We’re still finalising it with the government, but we hope to have the final package announced imminently.”

“We’re talking weeks, not months,” he added, when asked about a specific deadline.

Mr Copley said it is “difficult to put a precise timeline” on when the emergency package will result in increased housing starts, but that “everything is pushing towards early delivery”.

He said he is “confident” London will see a rise in starts in 2026, stating that viability challenges last year were down to delays at the Building Safety Regulator (BSR), the introduction of regulations around second staircases and the impact of high interest rates.

“But I think that we are going to be pulling out of that in 2026 and there’s a lot of reason for optimism,” Mr Copley said. 

Mr Copley said issues around the BSR are “being turned around” with developers saying they are getting schemes through in 12 weeks.

However, when asked about the knock-on effects of war in the Middle East on interest rates and housebuilding, Mr Copley said “there’s no getting away from the fact that it is likely to have an impact in London”.

“There’s already a lot of talk about interest rates not coming down, a question about whether or not they will even start to go up. But I think it’s too early to make predictions on that front… I think we do need to wait and see how long the conflict goes on for,” he told Inside Housing.

On the £11.7bn Social and Affordable Homes Programme for London, Mr Copley urged housing associations and boroughs to “put in their most ambitious but, of course, realistic bids”.

He pointed to the benefits of the sector having a long-term rent settlement, a decision on rent convergence, access to building safety funds for social rented homes and the ability for councils to combine Right to Buy receipts with GLA grant.

Mr Copley said: “All of these things were the top asks of the sector that came to our London Housing Delivery Taskforce. 

“And having been given those by the government, now is really the time to make sure that they’re all stepping up and maximising that delivery because the more we can maximise that first bidding round, the easier it is then to make the case for London to get more funding in the future.”

On the ambition for local authorities to become strategic partners under the new grant programme – something the government is pushing for across England – Mr Copley said the GLA “will be delighted to have boroughs as strategic partners”.

“I think almost every local authority I speak to is keen to be a strategic partner, and I love that level of ambition,” he added.

Two London boroughs were strategic partners under the GLA’s 2016 to 2023 Affordable Homes Programme, and the mayor has “consciously put in place measures to support council homebuilding”, according to Mr Copley.