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The deadline is rapidly approaching for developers to help shape proposals for an emergency package to support housebuilding in London
On 27 November 2025, MHCLG and the Mayor of London launched two consultations on four measures of a proposed emergency package to support housebuilding in London. These consultations close on 22 January 2025.
- The first consultation is the "London Emergency
Housing Package Consultation" by MHCLG (see here). This proposes:
- a new temporary Community Infrastructure Levy (CIL) relief; and
- extended referral and call-in powers for the Mayor of London.
- The second consultation is "Support for
Housebuilding – Draft LPG consultation, November
2025" by theMayor of London (see here). This covers:
- a new time-limited planning route; and
- temporary changes to cycle parking, dual aspect and dwellings per core aspects of London Plan Guidance.
The fifth measure of the emergency package is a new City Hall Developer Investment Fund, to which the government proposes allocating an initial £322 million from 2026-27 to enable the Mayor to further support housebuilding. The terms of this programme are being established between the Greater London Authority (GLA) and MHCLG. We await further details, including information on how to apply for funding and how funding decisions will be made.
What do we think of the consultation proposals? It is encouraging to see clear acknowledgement of the challenges facing developers seeking to deliver housing in London. However, whilst temporary measures like potential CIL relief are to be welcomed, and the introduction of a time-limited planning route offers the promise of support, schemes will only be able to access them where they can commit to delivering the first 10% of homes as affordable homes without grant. They must go on to provide at least 20% of homes as affordable, and to do so in a limited timeframe. In the current market, few schemes will actually find that percentage hurdle achievable, particularly for schemes that really have the potential to shift the dial on housing delivery. Further, many developers may still point to an underlying lack of market demand also posing a challenge to scheme delivery. This makes an expectation that schemes build out promptly or face claw back proposals a commercial risk that they will need to grapple with.
Developers should take this opportunity to shape the technical detail of the proposals by responding to the consultations with views, supported by evidence, of whether they will make the difference that the government and the GLA are hoping to achieve, and also whether they are likely to take-up the new routes to permission and the new CIL relief or continue to rely on existing routes and reliefs.
To help our clients decide whether and how to respond, we have prepared a detailed summary and analysis of the consultation proposals. If you would be interested in receiving a copy, please contact us using the details below.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.
