Emergency Housing Package for London housebuilders

Housebuilding in London is way off target.

Could relaxing red tape and removing additional costs, such as Community Infrastructure Levy payments, entice builders back into the Capital?

London has some monumental housebuilding targets to hit, but is currently way off course. Could easing Planning red tape increase construction projects?

The Greater London area should be delivering 88,000 homes a year. Latest figures show completions are below half of that, and starts are even lower.

This consultation, which is open for feedback until 22nd January 2026, suggests an 'Emergency Housing Package' to hopefully increase construction work across the Greater London area.

https://assets.publishing.service.gov.uk/media/692859b0b3b9afff34e96152/london-emergency-package-consultation.pdf

Proposals include:

💰 A temporary relief from Community Infrastructure Levy for some projects.

🏦 Relaxing rules on dwelling density.

📜 Allowing planning permission without a viability assessment

👩‍⚖️ Giving the Mayor greater power to over-rule local boroughs

💸 Creating a City Hall Developer Investment Fund.

These London-specific suggestions follow on from a number of country-wide proposals in the last year to streamline and speed up planning permissions.

If you're trying to build in London, have a read and let MHCLG know your thoughts!