London weighs lower threshold
London is considering cutting the proportion of affordable homes developers must include in fast-tracked planning applications, amid warnings that the current 35% target is stalling construction.
The Greater London Authority has been in talks about lowering the threshold to revive housebuilding, which has slumped despite government pledges to deliver 1.5mn homes across the country this parliament. Just 3,950 new homes were completed in London in the first half of the year, far short of the annual target of 88,000.
Balancing cost and delivery
Developers argue that high affordable housing quotas render many schemes unviable, with industry groups pressing for a cut to around 10-15%. Ministers, meanwhile, are promoting new towns in Bedfordshire, Leeds and north London as part of a wider national push.
Housing secretary Steve Reed is under pressure to boost supply, while London mayor Sadiq Khan faces calls to ease demands that critics say have slowed delivery.
West Midlands contrast
The debate resonates in the West Midlands, where mayor Richard Parker has tied a larger share of housing funding to affordable homes. While his approach has been welcomed by campaigners, some developers warn that tough conditions can make projects harder to finance and risk slowing the pace of building.
Like Khan, Parker is under pressure to balance ambitions for affordable housing with the need to accelerate overall supply. Industry figures say that without flexibility, both regions could fall behind government targets.
National challenge
The wider picture is bleak: approvals for new homes in England in early 2025 fell to their lowest in 13 years. With Labour’s flagship promise of a housebuilding surge under strain, the row over affordable quotas underscores the tension between political promises and economic reality.
