Accelerated decision making powers and funds to ramp up housebuilding in London

On 23rd October, 2025 the Housing Secretary and Mayor of London agreed to take decisive action to tackle the housebuilding crisis facing the capital. The measures follow on from action taken by the BSR and MHCLG to speed up the building control process for high-rise buildings, with a further commitment to clear historic new build applications in England by the end of the year. Changes to processes including the BSR Innovation Unit seem to already be demonstrating progress, with the majority of applications for high-rise homes going through the newly established unit currently meeting or exceeding the 12-week average target.

The Mayor will be handed new powers to fast-track housing, which will include the ability to review and call-in housing schemes of 50 homes or more where boroughs are minded to refuse. City Hall can also become the decision-maker regarding developments of 1,000sqm or more on green belt. This new, streamlined approach to planning will also allow the Mayor to expedite the call-in process in certain cases without the need for a full hearing process. This will cut up to six months from the planning process. In addition, the Mayor will be given greater freedom to deliver Mayoral Development Orders, which will help unlock more homes by removing the veto from local authorities.

The announcement is being supported by the Government also confirming an initial £322 million fund to establish a City Hall Developer Investment Fund to ensure the Mayor can further increase housebuilding. This is on top of the previously announced £39bn for the Social and Affordable Homes Programme (of which the Greater London Authority (GLA) will receive up to £11.7bn) and low-cost loans through the National Housing Bank. The aim still being to help the government deliver its mission to build 1.5 million and the biggest increase in social and affordable housing in a generation through the Plan for Change. 

These time-limited, emergency measures, are subject to consultation, and aim to unlock development by making sites more viable and incentivise developers to get spades in the ground through a fast-tracked planning process for sites with at least 20 per cent affordable housing. Targeted measures will tackle squeezed viability, including the removal of design guidance that constrains density and temporary relief from development levies for schemes able to start promptly and guarantee affordable homes for Londoners.

Housebuilders will also receive time-limited emergency relief from the Community Infrastructure Levy (CIL) where this is necessary to unlock development, which will apply to projects that commence after the new regulations come into force and before 31 December 2028, ensuring their focus can be on building more homes and their plans are viable. The CIL will be available for qualifying schemes which commit to delivering at least 20 per cent affordable housing, and additional relief available at higher levels of affordable housing.

Some design restrictions will be withdrawn, with developers instead handed more flexibility so long as homes have adequate passive ventilation, daylight and privacy, and avoid overheating.

There will be flexibility in residential cycle storage requirements to reflect demand and account for the rise of dockless bikes and e-scooters in London. The changes reflect pressure on development viability such as where extra levels of basements are required, impacting the delivery of affordable homes on some sites

Housing Secretary Steve Reed said:

“Getting spades in the ground in London is crucial if we want to see the biggest increase in social and affordable housing and meet our target of delivering 1.5 million homes in our Plan for Change. I have worked closely with the Mayor of London to give the capital the shot-in-the-arm it needs to ensure more Londoners have an affordable home of their own.”

The Mayor of London, Sadiq Khan, said:

“Affordable housing has always been a top priority for me as Mayor. We have started more new council homes in London than at any time since the 1970s and, prior to the pandemic, completed more new homes in London than any time since the 1930s. But there’s now a perfect storm facing housebuilding in London due to a combination of high interest rates, the rising cost of construction materials, the impact of the pandemic and ongoing consequences of Brexit. All of this means we are now in the midst of the most difficult period for housebuilding since the global financial crash.

“Urgent action is required, which is why I’ve been working with the government on this package of bold measures. I grew up in a council house, so I know the importance of social and affordable homes. I’m not willing to stand by while the supply of affordable housing for Londoners dries up. With these significant new powers and the initial £322 million of funding from the government – plus the short-term emergency action to get more investment flowing into affordable housing – I’m confident that we can kickstart housebuilding and deliver more of the affordable homes Londoners badly need. I will always do everything I can to accelerate the delivery of genuinely affordable homes as we continue to build a better, fairer London for everyone.”

Andy Roe, BSR Chair, appointed in June as part of reforms to accelerate house building, said:

“After listening and learning, the regulator, with the support of MHCLG, has acted decisively to speed up its application processes for new high-rise residential buildings. We are already starting to see positive impacts and our continued focus on further improvements and engaging with applicants will ensure we can support essential construction, without compromising the safety standards needed to keep people safe in their homes.”

[edit] Related articles on Designing Buildings

• Affordable housing.
• Brownfield Passport.
• Building Safety Regulator reforms.
• Building safety and fire now with single Secretary of State at MHCLG.
• Consultation on proposed reforms to NPPF and other changes to the planning system.
• Detailed planning permission.
• Golden rules for the release of land.
• Government continues drive for 1.5 million homes despite upheaval.
• Grey belt.
• Green belt.
• IHBC response to revised NPPF.
• National Planning Framework.
• National Planning Practice Guidance.
• Neighbourhood development order.
• Planning overhaul to reach 1.5 million new homes.
• Planning permission.
• Planning policy replaced by the NPPF.
• The grey, the brown and the golden rules of housing.

[edit] External links

https://www.gov.uk/government/news/new-measures-announced-to-ramp-up-housebuilding-in-london

https://www.gov.uk/government/news/reforms-to-building-safety-regulator-to-accelerate-housebuilding

https://buildingsafety.campaign.gov.uk/building-safety-regulator-making-buildings-safer/the-building-control-authority/building-control-approval-application-data/