The government has announced new emergency measures to tackle the housebuilding crisis in London.

The emergency measures, which are subject to consultation, are set to “significantly ramp up housebuilding, unlock stalled sites and ensure more affordable homes are being built across the capital”.

The package for London, agreed today by the housing secretary and Mayor of London, includes time-limited planning routes to get more spades in the ground with at least 20% of affordable housing, temporary levy relief for developers, new powers for the Mayor to review and call-in housing schemes.

This will include the ability to review and call-in housing schemes of 50 homes or more where boroughs are minded to refuse. City Hall can also become the decision-maker regarding developments of 1,000sqm or more on green belt.

The new approach to planning will also allow the Mayor to expedite the call-in process in certain cases without the need for a full hearing process, cutting up to six months from the planning process.

The government also confirmed £322m of initial funding for a City Hall Developer Investment Fund to ensure the Mayor can further increase housebuilding.

The action will help the government deliver its mission to build 1.5 million.

The Greater London Authority will consult on the terms of the new time limited planning route over six weeks from November.

The new time limited planning route will be open until 31 March 2028, or the publication of the new London Plan.

Housing secretary Steve Reed says: “Getting spades in the ground in London is crucial if we want to see the biggest increase in social and affordable housing and meet our target of delivering 1.5 million homes in our Plan for Change.”

“I have worked closely with the Mayor of London to give the capital the shot-in-the-arm it needs to ensure more Londoners have an affordable home of their own.”

Meanwhile, Mayor of London Sadiq Khan states: “Affordable housing has always been a top priority for me as Mayor. We have started more new council homes in London than at any time since the 1970s and, prior to the pandemic, completed more new homes in London than any time since the 1930s.”

“But there’s now a perfect storm facing housebuilding in London due to a combination of high interest rates, the rising cost of construction materials, the impact of the pandemic and ongoing consequences of Brexit. All of this means we are now in the midst of the most difficult period for housebuilding since the global financial crash.”

“Urgent action is required, which is why I’ve been working with the government on this package of bold measures. I grew up in a council house, so I know the importance of social and affordable homes.”

“I’m not willing to stand by while the supply of affordable housing for Londoners dries up. With these significant new powers and the initial £322 million of funding from the government – plus the short-term emergency action to get more investment flowing into affordable housing – I’m confident that we can kickstart housebuilding and deliver more of the affordable homes Londoners badly need.”

“I will always do everything I can to accelerate the delivery of genuinely affordable homes as we continue to build a better, fairer London for everyone.”

In September, the Home Builders Federation revealed housebuilding in London is in “crisis,” which has led “investment in new housing sites to nosedive”.

The housebuilding lobby group said 30,000 homes were completed in London in the year to June, as measured by the number of new properties issued with energy performance certificates, down 12% from the previous year and “significantly below” the 2019/20 peak.

Its report, Mind the Gap, pointed out that the capital is expected to deliver 440,000 of the government’s 1.5 million new homes target by 2030.

It blamed a lack of support for buyers, “excessive bureaucracy”, unrealistic affordable housing demands and delayed planning application approvals among the causes for the crisis.

The body added: “Housing delivery indicators continue to head in the wrong direction with both housing completions and planning permission approvals falling year-on-year, putting this at significant risk.”