Don’t cut London’s affordable housing quotas, Labour MPs urge ministers and mayor | Housing

Labor MPs are urging ministers and London’s mayor to abandon controversial plans to cut affordable housing quotas in the capital in a bid to boost house building.

MPs said they were concerned about proposals drawn up by housing minister Steve Reed and mayor Sadiq Khan in response to a sudden decline in new development in the capital.

Reed and Khan are considering allowing builders to qualify for fast-track planning approval and are promising to build 20% affordable homes instead of the current minimum of 35%. Labor MPs hope to use the next few weeks to persuade them not to do this before the package is officially announced.

Florence Eshalomi, Labor chair of the housing select committee, said: “Solving the housing crisis depends not just on how many new homes we build, but also on their affordability. One of the main drivers of our crisis has been the inability to build homes that are accessible to local people for decades.”

“This problem has become particularly acute in London, where we have often seen developers prioritize profitable luxury units over housing that meets the needs of people who already live here.”

He added: “We must break the failing status quo and build affordable homes that meet the needs of our communities.”

Stella Creasy, Labor MP for Walthamstow, said: “Walthamstow has been struggling for years with the impact of development – ​​whether in housing or the rent growth it causes by encouraging gentrification – because housing costs are the reason we have such high poverty levels.

“We desperately need truly affordable housing and protections for renters, and I hope the mayor stands firm that these goals are important.”

Another Labor MP, who asked not to be named, added: “We understand there is a crisis in housebuilding in London, but there must be a way to solve this that does not involve allowing developers to get away without decent affordable housing.”

Ministers have been aware for months that they had a problem with housebuilding in London. But two reports released last week helped convince government officials that they needed to act quickly.

Analysis of official data by Center for Policy Studies It showed that construction of only 4,170 houses has started in 2024-25. Predictions from consultancy Molior He suggested there could be as few as 15,000 homes under construction by the beginning of 2027.

According to an internal memo obtained by the Guardian, Khan and Reed are considering a range of options to encourage construction, including reducing affordable housing quotas.

Other proposals include allowing councils to reduce the tax levied on developers who help pay for local infrastructure such as roads and GP practices, and increasing the amount of subsidies available for affordable housing.

But campaigners have warned the plans could worsen the city’s homelessness crisis.

Mairi MacRae, Shelter’s campaign and policy director, said: “Communities will continue to suffer while developers are allowed to absolve themselves of responsibility for building their share of social homes. Families will have to continue to endure appalling conditions, watching damp and mold climb the walls, with no hope of a safe home on the horizon.”

A government source said: “Housebuilding in London is clearly in crisis. The number of homes under construction for private sale or rent at any one time since 2020 has fallen by a third to around 40,000 today, with just over 3,000 affordable homes built across the city in 2023-24.”

“We have already increased funding for London’s affordable homes program compared to the previous government, but with so many Londoners stuck in temporary accommodation or on years-long housing waiting lists, we are having to look at every avenue to tackle the housing emergency we have inherited.

“That’s why we’re working with the mayor to rebuild the capital, including the social and affordable homes that Londoners desperately need.”