The Draft London Plan, published by City Hall on July 16, sets a target of building 558,000 homes between 2028 and 2037, significantly below the government's 850,000 target for the capital. Deputy Mayor for Planning Jules Pipe described the target as "credible" and "deliverable," emphasizing that it aims to give developers confidence.
Housing target criticized as too low
Jules Pipe stated that even the 558,000 target is not immediately achievable but could be within two years, requiring a significant economic upturn, increased Affordable Housing Grant, and massive transport investment. He claimed that reaching the government target would necessitate projects like the Bakerloo Line extension. Lucinda Turner, Assistant Director of Planning and Regeneration at the GLA, added: "We took the 850,000 figure from Government as a starting point. Our approach has to be grounded in reality. At this point, 558,000 homes over 10 years is the maximum realistic number – and that in itself is ambitious."
Reform UK Assembly Member Alex Wilson criticized the plan, calling it "a self-contradictory work of fiction" and noted that housing starts are only around 10,000 per year. He said: "This Draft London Plan is a perfect representation of Sadiq Khan’s Mayoralty – baseless and failing on the issues that matter."
Affordable housing thresholds vary by borough
The plan replaces a city-wide threshold with three bands: 35% affordable housing for 11 inner boroughs plus Richmond, 25% for eight others, and 20% for outer London authorities. Jules Pipe said this reflects varying viability across London, with the ambition to eventually return to 35% when economic conditions allow. Green Party Assembly Member Benali Hamdache condemned the 20% target as "a betrayal of Londoners and a sell-out to developers," urging the Mayor to push for more council housing. Liberal Democrat leader Hina Bokhari called the plan "an extraordinary admission of failure."
Limited Green Belt release approved
The plan confirms a "limited and selective release of Green Belt land" for housing, subject to strict requirements including maximizing affordable housing, high-quality design, good transport connectivity, and biodiversity improvements. This follows controversy over the Mayor's previous announcement to explore building on Green Belt areas.
Data centres get first dedicated policy
City Hall's first dedicated data centre policy aims to balance economic benefits with environmental impact. New data centres must offset negative effects by providing affordable workspace, computing access, local skills development, and infrastructure improvements. Benali Hamdache expressed concern, noting that Ireland's renewable energy is consumed by data centres, and argued that scarce land should prioritize homes over data centres.
Next steps
The plan undergoes a 13-week public consultation and independent review before needing approval from the Secretary of State for Housing, Communities and Local Government. A government spokesperson said: "We expect the Mayor to take all necessary steps to accelerate housebuilding and we will now carefully review the draft London Plan to ensure it maximises delivery across the capital."
