Mayor sets out new plans to build 90,000 affordable homes

Mayor of London Sadiq Khan last week set out new planning rules designed to accelerate affordable housing delivery, with investment of £3.15bn pledged to support 90,000 new affordable homes over the next five years.

Following negotiations with Government, the new funding will be spent on a mix of homes for low-cost rent, shared ownership and London Living Rent, which will be based on a third of the average household incomes in each borough. Most homes will be delivered by housing associations, on the basis that their plans will include at least 50% affordable housing, with some partners enabled to deliver at least 60%.

The announcement comes alongside the launch of new planning guidance designed to speed up planning decision-making and increase affordable housing delivery. The Supplementary Planning Guidance seeks to:

• Set out a clear, consistent and transparent approach to assessing development viability (which underpins the level at which affordable housing contributions are made);
• Fast-track planning applications which meet a minimum 35% affordable housing contribution, by removing the need for protracted viability negotiations; and
• Support the delivery of new ‘Build to Rent’ developments.