The Mayor of London Sadiq Khan has published the draft of his new London Plan for development in the capital over the next 20 years, pledging a "bold vision" that will make building easier while retaining quality and sustainability targets.
The strategic plan for development in London over the next two decades will be consulted on until 15 October 2026. Key initiatives are unlocking housebuilding by lowering the thresholds for affordable housing, developing for new industries such as AI and data centres, ensuring buildings adapt to climate change, and loosening restrictions on green-belt land development.
The full draft can be seen at Draft London Plan consultation resources | London City Hall
The draft outlines how City Hall’s planning powers will be used to focus on two key objectives, Khan said. They are to build as many affordable homes as possible and to deliver economic growth that benefits all Londoners, all while meeting a series of green commitments.
The draft is around half the length of the 2021 plan. The Mayor's office said this was to reduce burden on developers while retaining vital quality standards.
Priorities include creating space for data centres and economic clusters for industries that the mayor says will be vital to London’s future economy. This includes AI and life sciences.
The plan aims to ensure there is sufficient land available to meet demand from industries such as data centres, logistics, freight and other strategic infrastructure, while freeing up industrial land in "highly accessible locations" for housing.
The plans also aims to strengthen the Central Activities Zone as well as support Strategic Economic Clusters across London, what it terms "hotspot economic areas where specialised industries can drive economic growth".
It also focuses on supporting "world-leading destinations and the 24-hour economy". The redevelopment of Oxford Street will reinforce the West End’s position as a global destination for retail, culture, entertainment and tourism, the Plan says.
The new London Plan also promises to protect music venues, theatres and cultural spaces. It also recognises that "pubs and cultural venues" must be protected. It aims to revitalise high streets and town centres by "supporting shops, cafés, pubs, restaurants and independent businesses".
To protect businesses it will prioritise affordable workspace, industrial land, logistics and strategic infrastructure that can house start-ups.
Affordable housing threshold to drop
On affordable housing, a new framework will help to deliver as many as 558,000 new homes by 2037, the draft plan states. This will only be possible with the "right national support, including investment in key transport infrastructure that will help to unlock large housing projects".
The draft London Plan will move the affordable housing threshold back to 35% starting from 2028 from 50% for "as many boroughs as possible", over a third, and then use varying thresholds for the other boroughs.
The Mayor's strategic target remains 50% affordable housing, and applications can still go higher. The Plan says the revised percentage thresholds "simply dictate eligibility for the Fast-Track planning approach".
It says the proposals reflect updated evidence on development viability across the capital, and the potential for growth over the course of the plan.
The plan also aims to promote "greener neighbourhoods, cleaner air, sustainable transport and increased biodiversity".
Green belt and brownfield
It also prioritises brownfield development and will "ensure housing delivery on brownfield sites is accelerated wherever possible". It will also allow some "limited and selective release of green belt land".
It caveats this by saying: "There will be strict requirements in place for this to happen, which include: maximising the level of affordable housing on the land; ensuring high-quality housing design and good transport connectivity; and increasing biodiversity and access to good-quality green spaces as part of developments."
The Plan also aims to build climate resilience into new development.
It writes: "London experiences hotter weather, including more heat waves, the draft London Plan will encourage developers to use practical design features – such as shading, natural ventilation and building orientation – to help buildings stay cool naturally. The plan does not ban air conditioning, which can be incorporated into new developments alongside these design features. This may be especially important for hospitals, care homes and many schools to protect children, older people and vulnerable groups from extreme heat."
The first London Plan was published in 2004, setting out a framework for managing growth across the city to support the Mayor's social, economic and environmental priorities.
Successive London Plans have introduced nationally significant innovations, including the threshold approach to affordable housing and some of the UK's most ambitious planning policies to support net-zero development, sustainable design and greener neighbourhoods.
The Mayor of London, Sadiq Khan, said in a statement with the draft: “There are two key objectives that underpin this new plan: to build as many affordable homes for Londoners as possible in the years ahead, and to boost economic growth by creating the conditions for businesses to grow and thrive across the capital, including the industries of the future, like AI and life sciences.
“Over the last 10 years, we have built a record number of homes, but it’s a difficult time for housebuilding now due to a combination of high interest rates, the rising cost of construction materials, the legacy of the pandemic and the lasting impact of Brexit. The new plan is about doing everything possible to meet the challenges we face on housing, as well as ensuring we deliver good growth, protect London’s nightlife, revitalise local highstreets, and support the industries that will be crucial to London’s future economic success. This is how we can ensure our city remains the best place in the world to live, work and invest for decades to come.”
Fiona Fletcher-Smith, group chief executive of housing association L&Q, said in a statement released with the Mayor's press release: “At a time when housing need remains acute, a strategic approach that supports investment, unlocks development opportunities and prioritises affordability is essential.
“The draft London Plan recognises both the scale of London’s housing challenge and the importance of partnership in addressing it. We particularly support the focus on maximising affordable housing delivery, making effective use of land, and ensuring that growth is accompanied by the infrastructure, green spaces and services that communities need to thrive."
James Stevens, director of cities at the Home Builders Federation, said: “London’s housing affordability crisis is a challenge to the capital’s economic and social prospects so it is encouraging that the Mayor is focusing on improving the viability of new housing in this draft London Plan. Housing delivery has declined in recent years so a renewed emphasis on reducing administrative complexity and a streamlined planning process is welcome.”
The plan has, in part, been streamlined by following closely the government's National Planning Policy Framework reducing additional detail needed, "except in a small number of areas where the Mayor considers it important to continue with a targeted London approach, such as fire safety". It also aims to make processes and requirements more efficient and sets a consistent approach across London in several key areas, such as energy efficiency.
Following the consultation, the draft London Plan will be subject to an independent Examination in Public before final adoption, expected in early 2028.
Hannah Quarterman, planning partner at Addleshaw Goddard, said: “The headline points made by the GLA in its summary are largely as expected – there is emphasis on affordable housing and good growth, whilst protecting the green agenda. It’s the detail which proves more interesting. One thing sure to grab attention is that the approach to affordable housing has shifted from a London wide approach to setting different requirements for different boroughs. This is sure to cause consternation, as it isn’t immediately clear on what basis these distinctions have been drawn. It also seems a gross oversimplification of the economic realities facing more complex sites wherever they are in the capital.”
CBRE’s Head of Planning, Jonathan Stoddart, said: "The new London Plan marks a genuine shift in approach. For the first time, it targets land across the city, not just in key regeneration zones, to meet real development needs. The draft plan sets clear targets, including 56,000 new homes and around 350 hectares of industrial land, delivered through both site allocations and Green Belt release in identified Broad Locations for Growth. A new zonal approach to affordable housing policy is also welcomed in reflecting the very different economic landscapes that exist across the City."
Taran Livingston, director of planning, Land Use Consultants, said: “The draft London Plan is right to prioritise brownfield development first, while recognising that any green belt release must be carefully focused on sustainable, well-connected locations. Where green belt land is released, development must do more than just meet housing needs. It should create vision-based, mixed-use and well-designed places that deliver lasting enhancements to the green belt, maximise access to green space, and strengthen climate resilience, biodiversity, and health and wellbeing."
Craig Carson, regional managing director, Barratt London said: "It’s great to see a slimmed-down, more strategic London Plan, with such a positive focus on housing delivery. The draft Plan rightly acknowledges the reality that space in the capital is limited, and that making the best use of land – both by bringing forward new sites and unlocking the potential of existing ones – will be critical.
“A more strategic spatial approach is equally welcome, and clearer place designations should help create greater certainty and support delivery.
“Given the significant increase in the cost of delivering housing, it is encouraging to see a considered and thoughtful approach to affordable housing requirements, with different targets for different types of development and different parts of London, reflecting the varied circumstances across the capital." Antonia Jennings, CEO at Centre for London, said: “The London Plan is one of the Mayor of London’s most significant powers – and one of the most important documents shaping the capital’s future. It sets the strategic direction for housing and land use across London, signalling how competing priorities will be balanced in a city where land is scarce and demand is constant."
"Policies ranging from small-site development, to building safety, to biodiversity net gain and affordable housing, all move towards an integrated approach to growth - one that recognises that homes, jobs and use of public space cannot be planned in isolation. While planning is not the only determinant of success in an urban economy, vision-led strategies like the London Plan are essential blueprints for ensuring the city thrives, grows and supports every Londoner to live well."