London’s planning system is set for its biggest overhaul in years as City Hall prepares a new London Plan aimed at speeding up housebuilding, simplifying regulations and giving the Mayor greater powers to intervene in housing decisions.
The reforms come as London continues to face a significant housing shortage, with homebuilding levels falling well below government targets and affordable housing delivery struggling to meet demand.
The draft plan is expected to be published this summer before entering a formal consultation process ahead of its anticipated adoption in 2028.
Why the Current London Plan Is Being Replaced
The existing London Plan, adopted in 2021, runs to more than 500 pages and has faced criticism from developers, planning professionals and government officials for its complexity.
A review commissioned by former Housing Secretary Michael Gove found that developers seeking permission for relatively straightforward brownfield projects could be required to navigate at least 45 separate planning policies. Critics argue that the system has become increasingly difficult to interpret, particularly for smaller builders who often lack the resources of major developers.
City Hall believes simplifying the planning framework could help unlock more housing projects by reducing delays, lowering costs and creating greater certainty for applicants.
Deputy Mayor for Planning and Regeneration Jules Pipe has indicated that the new London Plan could be closer to half the length of its predecessor, with fewer overlapping policies and less duplication between City Hall guidance and borough-level planning documents.
Mayor Set to Gain More Power Over Housing Decisions
One of the most significant changes involves who ultimately decides whether major housing developments proceed.
Under powers introduced through the English Devolution and Community Act, passed in April 2026, the Mayor will be able to intervene in planning applications at a lower threshold than currently applies.
In practical terms, this means City Hall will have greater authority to review and potentially approve housing schemes that have been rejected by local councils.
The Mayor will also gain renewed powers to use Mayoral Development Orders, allowing planning permission to be granted directly on certain sites without following the traditional borough-led process.
Officials have already been instructed to identify suitable brownfield locations near major transport links where these powers could be used to accelerate development.
Supporters argue the changes could help overcome long-standing barriers to housing delivery. Critics, however, are likely to raise concerns about reduced local control over planning decisions.
What Are Mayoral Development Orders?
Mayoral Development Orders are planning tools that allow the Mayor of London to grant planning permission for specific categories of development within designated areas.
Rather than requiring individual applications to pass through the full borough planning process, qualifying developments can receive approval under a broader planning framework established by City Hall.
The government and the Greater London Authority view these powers as a way to accelerate development on strategic sites, particularly former industrial land and underused brownfield locations close to public transport infrastructure.
While the powers have existed previously, City Hall intends to make greater use of them under the new planning framework.
The Numbers Behind London’s Housing Challenge
The proposed reforms are being driven by a persistent gap between housing demand and housing delivery.
According to the government’s standard methodology, London needs to build around 52,000 new homes every year to meet demand.
In 2024/25, the capital delivered approximately 35,000 homes — significantly below that target.
The affordable housing picture is even more challenging.
By June 2025, only 5,500 affordable homes had been started through the 2021–26 Affordable Homes Programme. That represented just 29 percent of the revised target of 17,800 homes after City Hall and the government agreed to scale back earlier ambitions.
While planning reform alone will not solve London’s housing shortage, City Hall argues that reducing bureaucracy and speeding up approvals can help remove barriers that currently prevent viable projects from moving forward.
Why Affordable Housing Remains the Bigger Challenge
The success of the new London Plan will ultimately be judged not only by how many homes are built, but also by what type of homes are delivered.
London’s housing affordability crisis is most acute among lower-income households, particularly those seeking social rent and genuinely affordable housing options.
Increasing overall housing supply may improve market conditions over time, but it does not automatically guarantee a substantial increase in affordable housing delivery.
The Greater London Authority is also consulting on changes that would allow affordable housing contributions to be adjusted on viability grounds in some circumstances. Supporters argue this flexibility could help stalled developments proceed, while critics fear it may reduce affordable housing provision on certain schemes.
The balance between encouraging development and securing affordable homes is likely to remain one of the most closely watched aspects of the new plan.
What Happens Next?
The draft London Plan will be published for public consultation during summer 2026.
Following consultation, the document will undergo examination by independent inspectors before being formally adopted, a process expected to conclude in 2028.
Alongside the new plan, City Hall is introducing a new time-limited planning route intended to accelerate decision-making for suitable applications. This will operate alongside the existing Fast Track and Viability Tested pathways.
Further details on potential Mayoral Development Order sites are expected as the planning reforms progress.
What It Means for Londoners
For residents, developers and local councils, the new London Plan represents a significant shift in how housing decisions could be made across the capital.
The reforms are designed to simplify a planning system that many believe has become overly complex and difficult to navigate. If successful, they could help bring forward more housing projects and reduce delays in the development process.
However, the effectiveness of the changes will ultimately depend on whether they translate into a meaningful increase in both overall housing supply and affordable homes.
The next few years will determine whether a simpler planning system can help address one of London’s most persistent challenges.
Key Facts
| Detail | Information |
|---|---|
| Current London Plan | 2021 edition, over 500 pages |
| New London Plan Draft | Summer 2026 |
| Expected Adoption | 2028 |
| Target Length | Approximately half the current plan |
| Deputy Mayor for Planning | Jules Pipe |
| Deputy Mayor for Housing | Tom Copley |
| New Powers | English Devolution and Community Act (2026) |
| Mayor’s Call-In Powers | Expanded |
| Mayoral Development Orders | Expanded use proposed |
| Annual Homes Needed | Around 52,000 |
| Homes Delivered (2024/25) | Around 35,000 |
| Affordable Homes Started | 5,500 by June 2025 |
Based on confirmed information from City Hall, the Greater London Authority, the Local Democracy Reporting Service and Fitzrovia News.
