The Mayor of London's plans to slash affordable housing quotas in new developments are facing a major hurdle after three London councils launched a judicial review in the High Court, citing 'scandalous' policy that prioritises profits over people. The legal challenge, led by Tower Hamlets, Hackney and Lewisham, argues that Sadiq Khan's proposed reduction of affordable housing thresholds from 35% to 20% has been implemented without proper statutory process or consultation.
Supported by four additional boroughs – Lambeth, Southwark, Waltham Forest and Haringey – the councils claim there is no evidence to justify a blanket cut in affordable housing requirements across London. 'We're not just fighting for homes, we're fighting for the future of our city,' said Tower Hamlets Executive Mayor Lutfur Rahman, highlighting the growing concerns about London's unaffordable housing market, where average house prices far surpass national averages.
The proposed cut is part of a broader plan to speed up development and make schemes 'more financially viable'. However, the challenging boroughs argue that this could lead to thousands more homes being built with little prospect of being inhabited by those in need. Zoë Garbett, Executive Mayor of Hackley, echoed these concerns: 'We cannot allow our city's housing needs to be sacrificed on the altar of profit.'
Liam Shrivastava, Executive Mayor of Lewisham, reiterated that private developers have a duty to contribute to London's housing crisis, stating it would be 'totally wrong' for their profits to go unchecked while thousands remain on housing waiting lists. The outcome of this High Court challenge could significantly impact future housing developments and the delivery of affordable homes in London.
As the dispute reaches the courts, figures from Rightmove and Zoopla continue to highlight London's position as one of the UK's most expensive property markets, exacerbating concerns that reducing the mandate for affordable homes risks worsening existing shortages. The housing crisis is at a ten-year high in the capital, with housing waiting lists reaching record levels.
The Mayor's office maintains its stance on incentivising developers to build more quickly, but critics argue this policy will only serve to perpetuate an unaffordable and unsustainable property market that benefits few at the expense of many.