Build baby build; Accelerating housing building in the capital is set to get a time limited pass

The Government and City Hall have agreed a time limited package to boost housing delivery in London by improving viability, speeding decisions and adding new public investment. If successful, the approach could be extended to other high demand areas. (MHCLG, 2025).

What it does in London. The package introduces a fast track planning route for sites providing at least 20 percent affordable housing, with 60 percent of those for social rent. It eases design constraints, allows flexibility in cycle parking, and offers temporary Community Infrastructure Levy relief to help close viability gaps. The Mayor gains stronger call in powers on schemes of 50 homes or more, with a streamlined process aimed at cutting months from determinations. A £322 million City Hall Developer Investment Fund will co invest in stalled or unviable schemes, and the government will issue guidance to prevent repeated viability renegotiations under Section 73. (MHCLG, 2025).

When it starts. Consultation opens in November 2025, with full implementation expected in early 2026 once consultation closes and formal guidance is issued. The measures will remain in place until 31 March 2028 or until a new London Plan is adopted, whichever comes first. Interim guidance on Section 73 and qualifying applications is due later this year, allowing boroughs and developers to prepare schemes ahead of the formal launch. (MHCLG, 2025).

Why the £322 million fund matters. The City Hall Developer Investment Fund is designed to unlock stalled or marginally viable sites by providing targeted grant support and co investment to accelerate delivery. Because the funding is tied to faster delivery, development consultancy businesses should be ready to respond quickly. Sites with permissions in place, or close to being secured, and those facing funding or viability gaps will likely be targeted first.  Although initially London specific, the existence of such a fund is a clear signal that other city regions may well receive similar instruments if proved to be successful (MHCLG, 2025).

What it could mean for the rest of the UK. London is effectively the pilot for a national model. If the scheme increases starts, ministers are likely to roll out similar measures across core cities and growth corridor towns. Local authorities and developers elsewhere should prepare evidence bases now so they can move quickly if comparable routes open. (MHCLG, 2025).

Reference
MHCLG 2025, New measures announced to ramp up housebuilding in London, GOV.UK, 23 October. Available at: https://www.gov.uk/government/news/new-measures-announced-to-ramp-up-housebuilding-in-london Accessed 28 October 2025.