Rayner scraps London Plan review to take ‘new approach’ with mayor

As part of the government’s reforms to the National Planning Policy Framework, announced in July, London was given a building target of 81,000 homes a year. This is lower than the goal set by the previous government, but still well above the 35,000 homes delivered in the city last year.

In her letter, Ms Rayner called the new London target “ambitious but deliverable”, adding “to achieve it, output in the capital will have to increase markedly”.

“I appreciate fully the scale and breadth of the housing delivery challenge in London and I recognise that the city faces unique issues, but the government does expect London to take steps to boost its output,” she wrote.

Instead, a review of certain aspects of the London Plan, as demanded by Mr Gove, would be “better undertaken” alongside a forthcoming updated plan, “given that these elements cannot be meaningfully considered in isolation”.

Withdrawing the direction will allow the government and the Greater London Authority (GLA) to “take a new partnership approach on our shared aim to deliver the homes London needs”.

Ms Rayner said the government and City Hall could now work together on “shared priorities” such as providing “increased certainty” around brownfield development and releasing “low-quality grey belt sites” through green belt reviews.

Housing minister Matthew Pennycook will lead a roundtable to discuss increasing housebuilding in London “over the upcoming months”.

Ms Rayner’s letter was published on Monday after it was revealed that the number of starts by London housing associations has fallen 92% year on year, as construction began on just 150 homes in the second quarter of 2024.

She added: “I know mayor Sadiq Khan shares my commitment to tackle the housing crisis and boost economic growth to deliver real opportunities for Londoners.

“Our new approach will take more fundamental action and focus on a partnership approach to build the housing that London needs and unlock the city’s economic potential.”

The government is aiming to build 1.5 million homes over the next five years by overhauling the planning system and restoring mandatory local housing targets across the country.

A spokesperson for the mayor of London said: “The mayor welcomes this new constructive approach from government, as part of a partnership to accelerate housebuilding in the capital.

“Against the backdrop of a disastrous housing inheritance, it will take time to turn things around to deliver the homes we need. The need for significantly more high-quality homes across the capital cannot be underestimated.

“Everyone will need to play their part, working together to ensure the required infrastructure and funding is in place to meet London’s housing needs. The mayor’s new London Plan will underpin our efforts to drive higher housebuilding as part of building a better, fairer city for everyone.”

Last week, Tom Copley, deputy London mayor for housing and residential development, told Inside Housing that the long-promised City Hall developer will initially focus on joint ventures and land assembly.