The Mayor of London, Sadiq Khan, is facing a High Court challenge over his decision to reduce the affordable housing requirement for new developments from 35% to 20%. The legal action, a judicial review, has been initiated by the Green-led councils of Hackney and Lewisham, along with the Aspire Party-controlled Tower Hamlets. The Local Democracy Reporting Service (LDRS) understands that the challenge is also formally backed by Green-led councils in Lambeth, Southwark, Waltham Forest, and Haringey.
Background of the Housing Deal
Last year, City Hall and the Ministry for Housing, Communities and Local Government (MHCLG) agreed on a package of "emergency measures" to stimulate stagnating housebuilding in the capital. This included cutting the affordable housing quota from 35% to 20%. Almost a year later, the coalition of councils argues that this reduction will worsen London's housing crisis.
A spokesperson for the Mayor of London declined to comment on ongoing legal proceedings. MHCLG sources also said they would not comment on live legal matters.
Political Reactions
Green Party Leader and Assembly Member Zack Polanski stated that City Hall's record on affordable homes will be a key issue in the 2028 London Mayoral elections. He noted that Sir Sadiq has consistently missed government targets on affordable housing, blaming high interest rates, construction costs, and delays caused by the Building Safety Regulator. "We caused a political earthquake in the local elections last month and now every single one of the Green councils elected in London is backing this legal challenge to fight for affordable homes, alongside Tower Hamlets Council," Polanski said on June 24.
Polanski added: "This legal action lays bare the difference between electing Green and Labour Mayors. Green Mayors fight for a housing and planning system that works for people, not profit, while Labour Mayors cut affordable homes and line the pockets of private developers." He emphasized that London is at the epicentre of a nationwide housing crisis, with thousands of families on waiting lists and one in 21 children homeless. "This is a scandal, and it will be one of the key issues on the ballot in the London Mayoral elections in just two years' time," he said.
Assembly Members and Council Leaders Speak Out
Benali Hamdache, Polanski's party colleague on the London Assembly, accused Labour of selling out to developers. "London needs more council homes, not luxury flats - Green and Aspire Mayors are rightfully taking the Mayor of London to court to fight for genuinely affordable housing. Labour have sold out to the developers," he said.
Liberal Democrat group leader Hina Bokhari called on the Mayor to stop "lowering the bar" and instead stand up to developers. "London desperately needs more homes, but not just any homes. It's genuinely affordable homes, family homes and accessible homes that Londoners are crying out for," she told LDRS. "Whatever the Court may rule, the Mayor should be standing up to developers, not letting them off the hook."
Mayor of Hackney Zoe Garbett, formerly a London Assembly member, stated: "As Mayor of Hackney, my goal is simple: a Hackney our communities can afford to stay in. But with 40% of residents living in deprivation – and local families facing some of the longest waiting times for social housing – we urgently need more affordable social homes." She criticized the Mayor for slashing targets and letting developers off the hook.
Cllr Victor Chamberlain, Southwark Council’s Deputy Leader and Executive Member for Planning, said cutting the affordable housing requirement would "lock in a lower standard as the new norm and weaken our hand in negotiating every scheme with developers. Ultimately it would mean fewer much-needed affordable homes for Londoners, not more."
Mayor of Lewisham Liam Shrivastava added: "London is in an unprecedented housing crisis, and private developers have a duty to play a role in supporting our city. It would be totally wrong to allow their profit to go unchecked while thousands of people are on councils’ housing waiting lists." He noted that the Mayor has provided no justification for the changes, which will reduce the number of affordable homes built.
