Mayor of London Sadiq Khan has scrapped density limits in a bid to double the rate of housebuilding in the capital.
The mayor has pledged to reform existing planning rules to allow developers to provide high-density homes near town centres and transport hubs, cutting the need for car-parking spaces within developments.
He has also announced plans for small sites to make a stronger contribution to housing targets while promising to protect greenbelt land.
This would include building in people's backgardens.
The measures are outlined in the Draft London Plan, launched yesterday (29 November) with the aim of ramping up development to 65,000 homes a year. It follows the publication by City Hall of an earlier plan in September, before the Budget in which chancellor Philip Hammond pledged a total of £44bn to build 300,000 homes a year.
The Mayor's latest plan states proposed development on sites that do not clearly maximise housing density should be refused.
The plan says councils – working with developers and housing associations - should take a case-by-case approach to each site to determine its capacity based on surrounding infrastructure.
Mr Khan believes there is capacity for 24,500 homes a year on London’s small sites – typically those with space for between one and 25 homes.
But the plan also highlights the importance of good design and includes stronger policies on housing standards, including minimum space standards.
The draft London Plan includes the mayor’s key strategic housing commitment for 50 per cent of all new homes to be genuinely affordable.
It states that developers will be offered a fast-track route to planning permission if they reach a minimum of 35 per cent affordable homes.
Soaring house prices in the capital have put homes beyond the reach of many would-be buyers. According to HMRC, the average house price in London was £483,568 in September – more than double the average for the UK as a whole.
Mr Khan said: “I am using all of the powers at my disposal in my first draft London Plan to tackle the housing crisis head on – removing ineffective constraints on homebuilders so that we can make the most of precious land in the capital to build more homes in areas with the best transport links.
“My London Plan sets out how we are planning for the challenges our great city faces, but crucially focuses on my vision of a London that welcomes growth, celebrates its diversity and ensures every Londoner gets the opportunity to fulfil their potential.”
Simon Brooks, lead originator at Investec Structured Property Finance, commented: “Clearly, this is a welcome move that will help some developers improve the viability of sites and will hopefully give more certainty to developers when they acquire unconsented sites with a view for residential development.
“Whist this may allow us to support more schemes where planning has not yet been achieved, I don’t think it will be a silver bullet as developers and planners will still ultimately need to consider massing proposals in conjunction with the local landscape and other issues such as rights to light.
“Softening density restrictions dovetailed with clear guidance on how to fast track applications with a 35 per cent affordable provision is very welcome.
“I suppose an unintended consequence of all of these measures along with the chancellor’s stimulus for first time buyers last week is that are we going to just end up with lots of sub £500,000 one-bed flats?
“Will we actually see more development? Or do we get to our 300,000 homes each year by incentivising developers to build two or three one-bed flats when they were previously building two or three-bed homes?”
The draft London Plan will be published for consultation on 1 December, with responses invited until 2 March, 2018.
simon.allin@ft.com
