London planning news, July 2019


London planning news, July 2019

01 Jul 2019



Headline news


Mayor reveals funding gap of £4.9 billion/year needed to secure affordable housing delivery

The Mayor has launched a new report examining the amount of grant funding required to meet the target for new affordable homes, as set out in the draft new London Plan.

The new Plan identifies a need for 65,000 new homes each year, with the aim that 50% of these should be affordable. Modelling the changes in costs, revenues, and sales values between 2022/23 and 2031/32, City Hall analysis predicts a scenario where the gap between development costs and revenues will widen.

Accounting for these trends, the analysis identifies an average subsidy gap of around £284,000 per social rent home and £32,000 per shared ownership home over the ten-year period covered by the study. When considering the Mayor’s intention to build 325,000 affordable homes in this ten-year period, the overall shortfall is estimated to amount to £74.5 billion, almost £7.5 billion per year. When assumptions about private developers’ contributions to affordable housing delivery (equivalent to £2.3bn a year) and ‘cross subsidy’ from affordable housing providers (equivalent to £0.3bn a year) are factored in, the final estimate of the grants funding gap needed to deliver the new affordable homes programme is estimated to be £4.9bn a year.

Whilst the Mayor currently receives £70om in grant funding from central government to support the delivery of affordable homes, the report argues that a seven-fold increase in funding is needed in order to meet the new Plan’s targets.

Sadiq Khan commented:

‘This research shows that to build genuinely affordable homes at the scale required, the Government’s approach to funding needs to fundamentally change. We need to return to higher grant rates and agree a long-term settlement to give us the tools to keep tackling the housing crisis head-on.’

Mayor of London, Landmark report shows £4.9bn a year needed to deliver affordable homes

Greater London Authority, The 2022-2032 Affordable Housing Funding Requirement for London: Technical Report



Quote of the month

City Hall is building record numbers of new council and social homes, but we need far more funding if we are to truly tackle the housing crisis. As a new Prime Minister takes the helm, they must put their money where their mouth is and provide the funding we need to turn this crisis around.
Sadiq Khan, Mayor of London

Heathrow consults on expansion plans

On 18 June, London Heathrow Airport launched a consultation seeking views on its proposed expansion, setting out how it plans to manage and mitigate the effects of its growth on communities living in the vicinity.

Responses will support the Airport’s submission of a development consent order (DCO) application, which is currently expected to be submitted to the Planning Inspectorate in 2020. If a DCO is granted, the Airport said it hopes the third runway will open in 2026.

The consultation addresses the following specific areas:

  • the preferred Masterplan for expansion;
  • plans to operate the future airport;
  • preliminary assessment of the effects of the airport’s growth; and
  • plans to manage the effects of expansion.

The accompanying documents set out a range of planned mitigation measures, which aim to tackle a number of key environmental issues including noise, air quality, and climate change, as well as the Airport’s impact on local transport networks, surrounding communities, and the historic environment.

Those wishing to respond have until the 13th September 2019 to submit their views.

Heathrow Consultation Hub, Heathrow Airport Expansion Consultation

Third round of Good Growth Fund to open in the autumn 

The Mayor has announced the third round of his Good Growth Fund, a Fund which was set up to enable London’s community groups and voluntary sector to deliver projects that will help the regeneration of local areas.
Previous projects that have benefitted from the funding included community kitchens, affordable workspace providers, and 15 local markets across the capital.
Sadiq Khan commented:
‘This funding is part of my wider strategy to improve town centres and high streets. I am determined to address some of the big challenges facing our communities and ensure Londoners have a big say in the future of their city.’

Mayor of London, Mayor to offer £20m for local projects to support London’s communities



The Lichfields perspective

The need to build new homes in the capital is great and the ability to deliver affordable homes becomes harder.  If additional grants from central government could be forthcoming to support the delivery of affordable homes, this will undoubtedly go some way to assist in achieving the significant housing targets in the London Plan.
Simon Slatford, Senior Director


Disclaimer: This publication has been written in general terms and cannot be relied on to cover specific situations. We recommend that you obtain professional advice before acting or refraining from acting on any of the contents of this publication. Lichfields accepts no duty of care or liability for any loss occasioned to any person acting or refraining from acting as a result of any material in this publication. Lichfields is the trading name of Nathaniel Lichfield & Partners Limited. Registered in England, no.2778116