The Government and GLA are currently consulting on two documents aimed at stimulating and reviving housing delivery across London, in response to a sharp downturn in starts, increasing construction and financing costs, and overall viability pressures.  

Draft London Plan Guidance ‘Support for Housebuilding’ 

Firstly, the GLA is consulting on draft London Plan Guidance ‘Support for Housebuilding’. The measures proposed are largely time-limited and designed to address immediate viability and delivery challenges that the industry is facing.

The final LPG will not carry any statutory weight but will act as a material consideration in planning decisions, signalling the GLA’s aspirations for accelerated delivery and greater flexibility. 

Measure 1: Cycle Parking 

Until 31st March 2028 or until the revised London Plan is published, whichever is earlier, the draft LPG proposes revised long-stay cycle parking standards for dwellings, purpose-built student accommodation and shared living. The aim is to reduce cost and design constraints particularly for higher-density residential developments. 

As depicted in the  below table and map, requirements will be relaxed compared with the current London Plan standards, varying by borough according to dwelling size and current cycling mode-share. 

Options to provide flexibility over implementation are also proposed, such as public cycle hire infrastructure and storage for folding cycles counting towards the long-stay requirements.    

Measure 2: Design Standards 

Changes are proposed to the existing Housing Design Standards for London Plan Guidance 2023, aiming to give developers greater flexibility in layout and configuration, and efficient use of space: 

- Removal of the requirement for dual-aspect dwellings unless exceptional circumstances apply; the new draft standard instead proposes a flexible approach to both dual and single aspect dwellings. 

- Removal of the requirement of no more than eight dwellings per floor to be accessed by a single core, and providing support for designs which exceed this number. 

Measure 3: Affordable Housing

A new time-limited route for affordable housing is proposed, aimed at accelerating delivery in the short term but still allowing for later affordability uplift if market conditions recover. 

Under this route a commitment to a minimum defined level of affordable housing will not require a full viability assessment at the planning application stage, and access to grant funding is also provided for affordable homes (excluding the first 10% which must be provided as affordable housing without grant).  

To be eligible for this route, several parameters need to be met including:

- The minimum threshold for affordable housing, by habitable rooms, varies for land types and includes 20% for private land and 35% on public land. 

- A minimum of 60% needs to be delivered as social rent, with the remaining 40% as intermediate tenures; or in Build-to-Rent schemes, at least 30% at or below London Living Rent / Key Worker rent with the remainder as affordable rent. 

- The route will be available until 31st March 2028 or the publication of the revised London Plan, whichever is earlier, and all planning applications will need to have been issued by the deadline.

A gain-share review mechanism will be applicable where construction has not reached a fixed milestone by 31st March 2030.

Government’s London Emergency Housing Package 

Alongside the draft LPG a wider package of support for housing delivery in London is being consulted on by the Government.  

Time-Limited Relief from the Community Infrastructure Levy (CIL) 

Emergency CIL relief will be available in all LPAs within Greater London and: 

- Apply to residential floorspace (excluding student and co-living accommodation), provided this does not take place on excluded (such as Green Belt) land. 

- Cover 50% of the borough-level CIL liability of schemes which deliver 20% affordable housing, increasing up to 80% CIL relief if 35% affordable housing is delivered. 

- Be limited to borough-level local CIL liabilities that would amount to £500,000 or more if the emergency relief was not applied. 

- Be subject to evidence from developers of the financial impact of paying their CIL liability in full on the viability of their development. 

- Be subject to development commencing after the relief is in force and before 31st December 2028. 

Permanent Changes to the Mayor’s Call In Powers 

Expanded call in powers are also proposed for the Mayor of London relating to developments of 50 or more dwellings where a borough is minded to refuse an application, and for buildings of more than 1,000sqm on Green Belt or Metropolitan Open Land. 

Under this new power, if an LPA proposes to refuse, they must notify the Mayor who will have 21 days to consider whether to call-in the application. 

Moving Forward 

Consultation for both documents closes on the 22nd January 2026 with the final measures expected to come into force in early 2026. 

The combined measures are intended to address both financial viability constraints and planning-process bottlenecks that have contributed to the recent housing slowdown in London.

For developers with residential schemes in London, the draft LPG and wider measures could offer a timely opportunity to accelerate delivery and improve viability under more flexible planning and design parameters.

As the routes and relief are largely time-limited, developers will need to react quickly and assess whether the new provisions can be capitalised on within the window. 

If these measures have prompted any questions or thoughts relating to your own schemes, please do get in touch at planning@union4.co.uk. We are always happy to discuss development opportunities to assist in optimising the delivery of your schemes. 

Support for housebuilding in London - GOV.UK

Support for Housebuilding LPG | London City Hall

Please note these documents should be read in full and the above is only a summary of key points.