Committee publication · Correspondence · 26 November 2025
Letter from the Secretary of State to the Chair dated 20 November 2025 concerning support for housebuilding in London
From: Housing, Communities and Local Government Committee
Inquiry: Affordability of Home Ownership
Summary
Secretary of State Steve Reed outlines the Government's London Housing Emergency Package in response to the Committee Chair's November 6 letter. The package proposes a 20% affordable housing threshold (60% Social Rent), a gain-share mechanism requiring first-floor slab completion, design flexibilities on dual aspect and cycle storage, and an exemption for Building Safety Regulator delays. Funding combines existing programmes (£4.16bn Affordable Homes Programme, £11.7bn Social and Affordable Homes Programme, £322m City Hall Investment Developer Fund) with £2bn bridge funding.
Key findings
- Affordable housing threshold set at 20% with minimum 60% Social Rent; half expected delivered without grant, following extensive engagement with providers and developers
- Affordable housing starts in London collapsed to 3,156 in 2023–24 from over 26,000 the previous year, justifying the measure as status quo is not delivering sufficient affordable housing
- Gain-share mechanism requires construction to reach first-floor slab as meaningful milestone to discourage delay and encourage housebuilding; all recovered funds ringfenced for affordable housing
- Exemption granted for schemes facing unreasonable delays from Building Safety Regulator, as 60% of higher-risk building units nationally are in London and 78% of London planning-approved units are HRBs
- Design flexibilities on dual aspect and cycle storage proposed; research shows only 15% of cycle spaces used in schemes while provision costs run into millions
Tone
ProceduralTopics
Key actors
Steve Reed OBE MP, Florence Eshalomi MP, Housing, Communities and Local Government Committee, Greater London Authority, Building Safety Regulator
Notable line
“35 per cent of nothing is nothing.”
Key Quotes
“This package is about getting London building again. The capital is facing a housing emergency, and we cannot afford to let schemes that have become unviable stall while families wait for the homes they need.”
“In 2023 – 24, affordable housing starts in London fell to just 3,156 – down from over 26,000 the year before.”
“35 per cent of nothing is nothing.”
“Requiring construction to reach the first-floor slab sets a meaningful milestone that discourages delay and encourages housebuilding.”
“London is disproportionately affected – 60 per cent of higher-risk building (HRBs) units nationally are in the capital, and 78 per cent of units approved for planning in London are HRBs.”
Source · parliament.uk record ↗