Overview
- Talks between Housing Secretary Steve Reed and Mayor Sadiq Khan follow a leaked memo outlining an emergency reduction of the GLA’s 35% affordable-homes requirement to about 20%, with roughly 10% funded by developers and 10% by councils.
- Government and City Hall sources say details are being finalised, with reports suggesting an announcement could come within weeks and the measure potentially lasting less than two years.
- Options under discussion include lowering the fast-track threshold to 20%, increasing subsidies for affordable units, allowing councils to waive the community infrastructure levy, and inserting an automatic review clause.
- The push responds to a sharp slump in delivery, including only 3,950 completions in the first half of 2025 and 347 affordable starts between April and June, with analysis showing homes under construction could fall toward 15,000 by 2027.
- Developers have welcomed the direction of travel, while councils, analysts and charities warn it would cut social housing provision and set a precedent for lower targets elsewhere.