Overview

• A leaked memo reported by The i outlines reducing the Greater London Authority’s affordable-housing requirement from 35% to about 20%, split 10% from developers and 10% funded by councils.
• Housing Secretary Steve Reed and London Mayor Sadiq Khan have held talks on an “emergency reduction” intended to revive stalled housebuilding in the capital.
• A government source declined to confirm the proposal, calling London housebuilding “in crisis” and citing a one‑third drop in homes under construction since 2020 and just over 3,000 affordable-home starts in 2023/24.
• Local council leaders and planning experts warn the change would cut social and affordable supply, prompt developers to resubmit schemes at lower rates, and set a precedent that could spread nationally.
• The discussion is framed by Labour’s pledge to deliver 1.5 million homes this parliament, with roughly a quarter expected in London, while industry voices welcome looser quotas but note other constraints such as new building safety regulation.