Labour MPs are urging ministers and London’s mayor to abandon controversial proposals that would reduce affordable housing quotas in the capital in a bid to revive stalled housebuilding.
Housing secretary, Steve Reed and mayor Sadiq Khan are considering changes that would allow developers to secure fast-track planning approval by committing to deliver just 20% affordable housing, down from the current 35% minimum.
The plan is being developed amid a dramatic fall in construction across London, but MPs want the policy dropped before its expected announcement in the coming weeks.
Florence Eshalomi, Labour chair of the housing select committee, warned that affordability must remain central to any strategy. “The housing crisis is not only about the number of new homes, but whether local people can afford them, London has seen too many luxury units built while families wait for homes that meet their needs.”
Stella Creasy, the MP for Walthamstow, added that cutting targets would worsen gentrification and rising rents. “We desperately need genuinely affordable housing and protections for tenants,” she said.
Another Labour MP said there were other ways to stimulate construction: “We understand the crisis, but developers must not be let off the hook.”
Recent figures have intensified pressure on ministers to act. Research by the Centre for Policy Studies shows just 4,170 homes were started in 2024-25, while projections suggest as few as 15,000 homes could be under construction by 2027.
Proposals being discussed include lower quotas, removing a local infrastructure levy, and increasing subsidy levels. But housing campaigners warn the plan risks deepening homelessness. Shelter’s Mairi MacRae said developers must not be allowed to wriggle free of their responsibility.
A government source argued urgent action is needed, saying housebuilding in London is in crisis and that all options must be explored to get the capital building again.
