Overview
- Housing secretary Steve Reed and mayor Sadiq Khan are drawing up a package to restart stalled schemes, with reports suggesting an announcement could come as early as next week, though officials say no final decisions have been made.
- Cutting the fast-track planning threshold for affordable homes from 35% to 20% is a leading option, alongside higher subsidies and potential relief from developer levies to improve scheme viability.
- Labour MPs and housing charities including Shelter and Crisis oppose easing quotas, warning it would reduce affordable delivery and deepen the homelessness crisis, while industry voices argue lower thresholds are needed to get sites moving.
- Analyses show construction has slumped to roughly 40,000 homes under way, with just 3,248 private units started in early 2025 and only 347 affordable homes started in the second quarter.
- Developers cite mounting pressures including Building Safety Regulator hold-ups averaging about 36 weeks with some cases stretching toward a year, a 21% rise in build costs since 2021, higher borrowing costs, and skills shortages.