Check your borough: Sadiq Khan unveils new affordable housing targets

London boroughs will be given their own affordable housing targets from 2028 under new proposals unveiled by Mayor Sir Sadiq Khan, as City Hall looks to increase the number of affordable homes built across the capital despite a prolonged slowdown in housing delivery.

The proposals would replace London’s current city-wide affordable housing threshold with borough-specific targets from March 2028. City Hall says the move reflects the differing land values, development opportunities and viability challenges faced across London’s 33 local authorities.

Under the plans, 13 boroughs—including Westminster, Camden, Kensington and Chelsea, Tower Hamlets, Hackney and Wandsworth—would retain a 35% affordable housing threshold for eligible developments.

Eight boroughs, including Greenwich, Newham, Brent, Ealing and Lewisham, would have a 25% target, while the remaining boroughs would be expected to deliver 20% affordable housing.

The proposals follow a difficult period for London’s housing market. Last year, the UK government and the Mayor agreed to temporarily reduce the affordable housing threshold for new developments from 35% to 20%, describing it as an emergency measure aimed at preventing projects from being delayed or cancelled amid rising construction costs, higher borrowing rates and weaker market conditions.

City Hall argues that borough-specific targets will provide greater flexibility while maintaining pressure to deliver affordable homes where development remains viable. Officials say the changes are intended to maximise housing delivery rather than impose a one-size-fits-all requirement.

Housing remains one of London’s biggest political challenges. Government figures show the capital has consistently fallen short of its affordable housing ambitions in recent years, with high construction costs, planning delays and limited developer confidence slowing new projects.

The proposals have already drawn political criticism. Lord Bailey, the Conservatives’ housing spokesperson at City Hall, accused the Mayor of failing to deliver the homes promised to Londoners and argued the new system risks shifting responsibility onto borough councils.

The consultation forms part of a wider review of London’s planning framework. If approved, the borough-specific targets would come into force in March 2028, with developers expected to meet the new thresholds when seeking planning permission.

For Londoners struggling with rising rents and house prices, the changes are unlikely to provide immediate relief. However, City Hall hopes a more flexible approach will unlock stalled developments and increase the supply of affordable homes over the coming years.