Three London Councils have launched a legal challenge against the mayor’s decision late last year to reduce the affordable housing requirement in the capital.
The decision was made in October 2025, with Sadiq Khan opting to reduce the affordable housing requirement in a bid to boost housebuilding in London, which has fallen heavily behind targets. Khan was adamant that “20% of something is better than 35% of nothing”, but the move drew widespread criticism from the social housing and homelessness sectors.
Now, Tower Hamlets, Hackney and Lewisham Councils have pushed for a judicial review, claiming that the correct procedure was not followed and Khan did not consult councils before the change was made. Council leaders from each authority have agreed that the change has impeded their ability to provide the highest level of affordable accommodation, and are urging Khan to stand up to developers.
When the GLA announced the change, much of the criticism centred around the lack of impact of the change in terms of the overall housing crisis. With temporary accommodation across the country skyrocketing, market rate homes will do little to help the families on the breadline, and certainly not those recovering from homelessness. Allowing developers to further cut below the affordable housing requirement and further imbalance the ratio of affordable to market rate will housing may have a small effect on housebuilding levels, but the majority of homes delivered will only be accessible by an increasingly shrinking demographic.
In October last year in response to the changes, Olga McMurdo, founder of Most Architecture, told Architects Journal: “Small-scale policy tweaks, such as slightly lowering affordable housing quotas, cannot fix a system this broken.
“[The] government must invest long-term, revive council housing and empower small builders to restore a balanced, productive housing market.
“Real change demands that housing be treated as a long-term public investment.”
Zoe Garbett, the Mayor of Hackney for the Green Party was outspoken in her calls for supported affordable housing delivery, and accused the London mayor of removing Council’s decision making. In Hackney, according to the councils own rules, developers are required to offer at least 50% of homes at affordable levels, a response to a bloated waiting list and 3,500 families living in temporary accommodation. Garbett insisted that their goal was not to obstruct the mayor, and instead is seeking collaboration to enhance affordable delivery.
Lewisham’s mayor, Liam Shrivastava echoed Garbett’s statements, and insisted the housing issue is not just one of supply, but of affordability. The situation in Lewisham is similar to that in Hackney, with over 10,000 households currently on the borough’s waiting list.
Khan has said that he cannot comment on ongoing legal proceedings.
