Prime Minister Rishi Sunak has announced that he will intervene in London’s housing policy and challenge the mayor, Sadiq Khan, over his record on building new homes.
This is a bold move by the Prime Minister, who claims that the mayor has failed to deliver the homes that London needs and has driven up house prices and made it harder for families to get on the housing ladder. But is this really the case? And what are the implications of this intervention for Londoners and the rest of the country? Let’s find out.
what is the London Plan and why is it important?
First of all, what is the London Plan and why is it important? The London Plan is a strategic document that sets out the long-term vision for the development of London over the next 20-25 years. It covers various aspects of urban planning, such as transport, environment, economy, culture, and of course, housing. It sets targets and policies for how many homes should be built, where they should be located, what types of homes they should be, and how affordable they should be.
The London Plan is prepared by the mayor of London and approved by the Secretary of State for Housing, Communities and Local Government. The current London Plan was published in March 2021 by Sadiq Khan, after a lengthy process of consultation and examination.
According to the current London Plan, London needs to build 52,000 new homes per year to meet its growing demand and address its housing shortage. Of these, at least 50% should be affordable, meaning they should be either social rented, affordable rented, or intermediate housing (such as shared ownership or discounted market rent).
The plan also sets out minimum space standards for new homes, design quality criteria, density guidelines, and sustainability requirements. The plan aims to make the best use of London’s land and prioritize brownfield sites (previously developed land) over greenfield sites (undeveloped land). The plan also encourages higher-density development in areas with good public transport access, such as town centers and opportunity areas.
So far so good. But what is the problem with the London Plan and why does Rishi Sunak want to intervene? Well, according to the Prime Minister, the problem is that the London Plan is not delivering enough homes for Londoners, especially for young people who want to buy their own homes.
He claims that under Sadiq Khan’s leadership, only around half of the homes that he himself has said he needs to build are being built. He also claims that the mayor’s policies are too restrictive and bureaucratic, and that they discourage developers from building more homes. He says that the government is stepping in to boost house-building and make home ownership a reality again for people across this great city.
How does Sunak plans to do that?
How does he plan to do that? Well, according to reports, he has given Sadiq Khan a deadline of three to four months to agree changes to the London Plan before Housing Secretary Michael Gove considers whether to use his ministerial powers to intervene. He wants more flats and houses to be built on some sites, such as those close to Underground stations, rather than single-storey warehouses. He also wants to give over £150 million of funding directly to boroughs in a move that would bypass the mayor’s office and be used to prepare brownfield sites for new housing development.
What does Sadiq Khan say about this?
What does Sadiq Khan say about this? Well, he says that Rishi Sunak is playing politics with London’s housing crisis and that his intervention is unwarranted and unjustified. He says that he has delivered record numbers of affordable homes over the last six years4, consistently exceeding government targets despite the impact of the pandemic and Brexit. He says that his London Plan is based on robust evidence and extensive consultation with stakeholders and communities. He says that he welcomes more funding from the government for housing in London, but that it should be allocated through him as the democratically elected mayor of London. He says that he will not accept any changes to his London Plan that would undermine its quality or affordability.
Who is right and who is wrong?
Well, that is not an easy question to answer. There are many factors and complexities involved in housing policy and delivery in London. There are also different perspectives and interests at stake: developers, landlords, tenants, buyers, sellers, local authorities, central government, etc. There are also different definitions and measurements of housing need, supply, demand, affordability, etc. There are also different trade-offs and balances to consider: between quantity and quality, between density and amenity, between growth and sustainability, between localism and centralism.
What we can say is that housing is one of the most important issues facing London today. It affects not only our living standards but also our health, wellbeing, social cohesion, economic prosperity, and environmental sustainability.
It is also one of the most contentious and divisive issues, as it reflects our values, aspirations, and identities. It is therefore crucial that we have an informed and constructive debate about it, and that we work together to find solutions that are fair, effective, and inclusive. That is why we hope that Rishi Sunak and Sadiq Khan can put aside their political differences and work together for the benefit of Londoners and the rest of the country.