Support for Housebuilding: What the New London Plan Guidance Proposes

The Greater London Authority has released draft London Plan Guidance aimed at boosting housing delivery in response to challenging economic conditions and a slowdown in construction across the capital. The measures, published jointly by the Government and Mayor in October 2025, focus on improving viability, offering flexibility and accelerating the delivery of new homes, particularly affordable housing. The consultation runs until 22 January 2026.

A major part of the consultation is a set of time-limited changes to cycle parking requirements. Until March 2028 (or the publication of the revised London Plan), reduced minimum cycle parking standards apply for new homes, student accommodation and large-scale shared living. New bands of provision offer lower baseline requirements, with scope for boroughs to justify higher levels where local demand is strong. The guidance also allows far greater flexibility, including shared cycles, hire schemes, on-street solutions and folding-cycle storage, provided quality and security remain high.

The draft guidance also proposes greater flexibility in housing design standards. Requirements for all dwellings to be dual-aspect and limits of eight homes per core per floor are withdrawn. While London Plan Policy D6 still expects good daylight, ventilation and privacy, decision-makers are encouraged to support well-designed schemes even where single-aspect homes or higher numbers of units per core are necessary.

Another significant reform is a new time-limited planning route for affordable housing. Residential schemes on private land delivering at least 20 per cent affordable housing, or 35 per cent on public land, can proceed without an upfront viability assessment and may access GLA grant funding above the first 10 per cent of affordable units. A review mechanism applies for schemes that do not reach a construction milestone by March 2030, ensuring any improvement in viability can translate into additional affordable housing.

Alongside this, government is consulting on time-limited CIL relief, offering up to 50 per cent borough CIL reductions where 20 per cent affordable housing is delivered, further improving scheme viability.

Together, these measures aim to speed up delivery, unlock stalled sites and secure more affordable homes across London in the short term.

There has been a slowdown in construction across the capital