Sadiq Khan has announced that London’s city-wide affordable housing targets will be replaced by borough-specific targets accounting for local conditions, coming into effect from March 2028. The announcement comes after Khan and the GLA reduced the affordable housing target for new developments earlier this year, reducing the target from 35% to 20% in an emergency measure aimed to unlock housebuilding.
The plans were announced as part of Khan’s draft London Plan, aiming to lay down measures that will boost the economy, opportunities and housing in the capital. The draft plan will be subject to an open consultation taking place from 16 July until 15 October, where locals can give feedback on the measures proposed.
More than a third of the London boroughs will remain with an affordable housing target of 35% for any new developments. This includes Wandsworth, Lambeth, Southwark, Hammersmith and Fulham, Kensington and Chelsea. Lewisham, Greenwich, Newham, Waltham Forest, Haringey, Brent and Ealing will have their target reduced to 25%, with the remaining areas having a 20% affordable housing target.
Earlier this year, three London boroughs launched a legal challenge agents the reduction of the target, with Tower Hamlets, Hackney and Lewisham councils pushing for a judicial review. The councils claimed that the correct procedure was not followed and Khan did not consult councils before the change was made, urging him to stand up to developers.
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The Mayor of London, Sadiq Khan, said: “London’s success depends on how well we plan for growth and the choices we make about the kind of city we want to be. This new draft London Plan is a blueprint for how we can continue to build a fairer, greener and more prosperous London for everyone over the next 20 years.
“There are two key objectives that underpin this new plan: to build as many affordable homes for Londoners as possible in the years ahead, and to boost economic growth by creating the conditions for businesses to grow and thrive across the capital, including the industries of the future, like AI and life sciences.”
The London Plan also focuses on the capital’s environmental goals, with aims to accelerate net-zero, ensure new affordable housing has access to green public spaces and embedding climate resilience into development plans. Overheating has become a more significant issue every year as temperatures continue to soar and “hottest day on record” becomes an annual headline. The plan includes measures to encourage developers to use practical design features such as shading, natural ventilation and building orientation to help buildings stay cool naturally.
