The Homes for London – Final Package of Support for Housebuilding represents a decisive and pragmatic intervention to address the acute downturn in housing delivery across the capital. It responds directly to the widely acknowledged reality that, in current market conditions, many consented and allocated sites have become unviable and are failing to progress through the planning and delivery pipeline.

At its core, the package is designed to restore confidence, improve scheme viability and accelerate delivery in the short to medium term, while providing a clear signal as to the future direction of planning policy in London (watch this space!).

Key elements of the final package

The final package brings together a series of targeted, time‑limited measures, refined following consultation, including:

• A new time‑limited fast‑track planning route for residential schemes delivering at least 20% affordable housing, removing the requirement for an upfront viability assessment and significantly streamlining decision‑making.
• Temporary CIL relief for qualifying schemes – now schemes commenced prior to 31 March 2030 and widening of eligibility

• Possibility of co-living and PBSA qualifying under the time limited planning route for affordable housing so long as they don’t, either individually or together, comprise a ‘main use’ within the development.
• Relaxation of certain London Plan design and density guidance, including a less rigid application of requirements relating to dual‑aspect dwellings, dwellings per core and cycle parking, where these are demonstrably constraining delivery.
• Expanded Mayoral planning powers, enabling the Mayor to call in and determine schemes of 50 homes or more where boroughs are minded to refuse, thereby reducing uncertainty and delay on strategically important sites.
• Flexibility on milestones for commencement with gain-share replaced by Early Stage Review
• 5-year long-stop for securing the benefits of the new time-limited route

Collectively, these measures are intended to apply both to stalled consented schemes and to new applications, maximising their immediate impact across the development pipeline. A part of the package that has however remained following the consultation is the CIL relief cut-off of borough CIL liability of £500k. With many London Boroughs now adopting / drafting ‘small sites’ affordable housing policies (requiring this tenure, or a contribution towards it for schemes of less than 10no. units) this will clearly be another obstacle for SME’s who contribute significantly to London’s housing stock.

Setting the tone for the emerging London Plan

Importantly, the Homes for London package does more than address short‑term viability challenges. It sets the tone and direction for the emerging London Plan, signalling a marked shift towards: –

• A delivery‑focused planning system, where policy requirements are proportionate to market conditions;
• Greater flexibility and pragmatism in the interpretation and application of design, density and affordability policies;
• Certainty and clarity for applicants, particularly where schemes are policy‑compliant and making a meaningful contribution to affordable housing supply.

While the measures themselves are explicitly time‑limited, the underlying philosophy is clear: the next London Plan is expected to be framed around unlocking supply, accelerating build‑out and removing unnecessary obstacles to delivery, rather than adding layers of complexity.

In Planning Director David Brown’s words, “We expect the current London Plan (Eric Bana) to evolve into ‘full Hulk’ mode.”

A clear conclusion: Policy is no longer the main barrier

Taken as a whole, the package provides strong evidence that planning policy, in principle, should no longer be viewed as the primary obstacle to housing delivery in London. The policy framework has been deliberately recalibrated to support development at pace, recognise viability realities and prioritise outcomes over process.

The critical issue now shifts from policy formulation to policy application. Success will depend on:

• The willingness of decision‑makers to embrace flexibility where schemes meet the package’s objectives;
• Effective use of Mayoral powers to resolve delay and inertia;
• A shared focus across the system on delivery rather than negotiation.

In this sense, Homes for London marks a clear inflection point. The emphasis is no longer on whether policy allows homes to be delivered, but on whether it is implemented decisively and positively to ensure that homes are actually built. The (perhaps rhetoric) question now is whether the upcoming Local Elections will impact on the delivery of these measures, particularly if the independent and ‘minority’ parties gain more seats.

Talk to our Team

If you’re assessing how this package impacts your schemes or pipeline, our planning, development and regeneration teams would be happy to discuss.

Contact David Brown or Mark Byles