Overview

• An internal memo shows Sadiq Khan and housing secretary Steve Reed considering cutting the fast-track affordable requirement from 35% to 20% to revive stalled projects.
• Labour MPs including Florence Eshalomi and Stella Creasy urge them to abandon the plan, warning it would reduce genuinely affordable homes and exacerbate homelessness.
• Molior reports only about 40,000 homes are now under construction, with 3,248 private units started in the first quarter and a projection of roughly 15,000 under construction by early 2027 without intervention.
• Developers point to surging costs and new safety obligations, with CPS estimating build costs up 21% since 2021 and BSR data showing 92% of applications delayed for an average of 36 weeks.
• Official figures record 74,720 London households, including 97,140 children, in temporary accommodation as boroughs spend an estimated £5.5m a day on emergency housing.