Rumours claim Sadiq Khan may cut affordable housing targets

With London Mayor Sadiq Khan under pressure to meet housing targets in the capital, there are rumours he may reduce affordable housing requirements.

Mr Khan’s targets require private housebuilders to make 35% of homes within each development affordable.

According to the Financial Times, the Greater London Authority could cut this quota to 10–15%.

London cannot continue with complex planning rules, excessive levies, and arbitrary design constraints

Despite Mr Khan pledging to build 88,000 homes a year in London, data reveals only 3,950 new homes were completed in the first half of the year.

Daniel Austin, CEO and co-founder at ASK Partners, says the Mayor’s affordable housing targets have stifled developers and hit housing supply.

He said: “Real estate development in London is currently paralysed. According to data from the Greater London Authority, the building rate in the capital is falling despite the government’s housebuilding targets. Developers are stifled by red tape and overbearing regulation which have increased construction costs to the point of killing the viability of schemes.

“This is hitting the supply of both private and social housing of which we are in urgent need. The current 35% affordable housing requirement has proven unworkable; in many cases paying the penalty not to deliver affordable housing is more economic than meeting the 35% allocation.

“Should the Mayor of London decide to reduce the quota, this would be a welcome move to improve the economics of development and boost the supply of much-needed affordable homes. London cannot continue with complex planning rules, excessive levies, and arbitrary design constraints that make projects unviable.”

In response, an ally of Mr Khan told the Financial Times: “The Greater London Authority continues to work closely with ministers to accelerate housing delivery in the capital.”