Labor MPs are urging ministers and the mayor of London to drop controversial plans to cut affordable housing quotas in the capital in a bid to boost housing construction.
MPs have said they are concerned about proposals being drawn up by the Housing Minister, Steve Reed, and the Mayor, Sadiq Khan, in response to a sudden drop in new development in the capital.
Reed and Khan are considering making builders eligible for fast-track approval of construction plans, while pledging to build 20% affordable housing, instead of the current minimum of 35%. Labor MPs hope to use the coming weeks, before the package is formally announced, to convince them not to do so.
Florence Eshalomi, Labor chair of the housing committee, said: “Solving the housing crisis depends not just on the number of new homes we build, but also on their affordability. One of the main causes of the crisis we are in is the decades-long inability to build homes within the reach of local people.”
“This problem is particularly acute in London, where too often we have seen developers prioritize profitable luxury units over homes that meet the needs of people already living here.”
She added: “We must break with the failed status quo and build affordable homes that meet the needs of our communities.”
Stella Creasy, Labor MP for Walthamstow, said: “Walthamstow has been struggling with the impact of development for years – whether on housing or the rise in rents it causes through gentrification – because housing costs are the reason we have such high poverty.
“We urgently need truly affordable housing and protections for renters – I hope the mayor insists these targets matter.”
Another Labor MP, who asked not to be named, added: “We understand there is a crisis in housing in London, but there has to be a way to solve it that doesn’t mean developers are getting away with without decent levels of affordable housing.”
Ministers have been aware for months that they face a problem with housing in London. But two reports published last week helped convince government officials they needed to act quickly.
An analysis of official data by the Center for Policy Studies showed that only 4,170 homes were started in 2024-2025 projections from the Molior consultancy firm suggested that as few as 15,000 homes could be under construction by early 2027.
after newsletter promotion
According to an internal memo obtained by the Guardian, Khan and Reed are considering a range of options to boost construction, including reducing affordable housing quotas.
Other proposals include allowing councils to drop a levy on developers that helps pay for local infrastructure such as roads and GP surgeries, and increasing the amount of subsidy available for affordable housing.
However, campaigners have warned the plans could worsen the city’s homelessness crisis.
Mairi MacRae, director of campaigns and policy at Shelter, said: “While developers are allowed to shirk their responsibilities to build their fair share of social housing, communities will continue to suffer. Families will be forced to continue to endure terrible conditions, watching damp and mold climb up the walls with no hope of a safe home on the horizon.”
A government source said: “Housing in London is clearly in crisis. Since 2020, the number of homes under construction for private sale or rental at any time has fallen by a third, to around 40,000 today – and just over 3,000 affordable housing starts have started in the city in the 2023-2024 period.
“We have already increased London’s funding for the affordable homes program compared to the previous government. But with so many Londoners stuck in temporary housing or on housing waiting lists that last years, we must look at every lever to tackle the housing shortage we have inherited.
“That is why we are working with the Mayor to reacquire the main building, including the social and affordable housing that Londoners desperately need.”
#Dont #cut #Londons #affordable #housing #quota #Labor #MPs #urge #ministers #mayor