A leaked memo from the Ministry of Housing reveals that the government is considering slashing affordable housing requirements for developers in London, a move that critics say will worsen the housing crisis. The memo, seen by the Guardian, details plans to reduce the threshold for affordable homes in new developments from 35% to 20%, making building in the capital far more profitable for major housebuilders.
The plan comes as Labour faces growing pressure over its pledge to build 1.5 million new homes by the end of this parliament. In London, the target of 88,000 homes by January looks increasingly unrealistic, with only 3,248 units started so far this year. According to consultancy Molior, one in six major housing projects in the capital is frozen, with sites padlocked.
The memo reveals extensive discussions with executives from Barratt, Vistry and Berkeley, while housing associations were consulted later and tenant groups and London councils were apparently excluded. The government is also considering suspending the community infrastructure levy, which funds amenities like GP surgeries and schools, as a further sweetener for developers.
Housing Secretary Steve Reed, who adopted the slogan 'Build Baby Build' from Donald Trump, has been criticised for his populist approach. At the Labour conference, he handed out red caps and staged a theatrical entrance to the tune of 'We Built This City'. However, the leaked memo suggests that despite the bombast, the government is struggling to meet its targets and is turning to policies that prioritise developer profits over affordable housing.
