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Tories and Reform Urged to Seize 'Once-in-a-Generation' London Housing Opportunity

A new report from two centre-right think tanks calls on the Conservative and Reform UK parties to tackle London's housing crisis, arguing existing planning powers are sufficient if backed by political will. The report highlights a need for 1.85 million additional homes in the capital, where housing starts have fallen to their lowest since WWII.

  • Report by Centre for Policy Studies and Onward argues London has the tools, but lacks political will, to solve its housing crisis.
  • Proposals include establishing new Development Corporations, regenerating post-war estates to double density, and releasing strategic industrial land for housing.
  • Recommendations also advocate for a strong presumption in favour of brownfield development, removing certain environmental requirements, and expanding homeowners' development rights.
  • Both James Cleverly (Conservative shadow housing secretary) and Laila Cunningham (Reform's London mayoral candidate) endorse the report's focus on political leadership and bold action.
  • The report suggests 500,000 additional homes could be delivered through estate regeneration alone, addressing a shortfall of 1.85 million homes in London.

A new report, backed by influential centre-right think tanks the Centre for Policy Studies and Onward, is urging the Conservative and Reform UK parties to capitalise on what it describes as a “once-in-a-generation opportunity” to address London’s deepening housing crisis. Published under the title ‘Fixing London Housing’, the report contends that the capital already possesses the necessary legislative tools to significantly increase home delivery, but is hampered by a lack of political will to implement them effectively.

The document features forewords from prominent figures within both parties: James Cleverly, the Conservative shadow housing secretary, and Laila Cunningham, Reform’s mayoral candidate for London. Both leaders underscore the critical role of political leadership in boosting housebuilding across the capital. Cleverly emphasised the need for decisive action on regeneration, brownfield sites, and bureaucratic hurdles, stating that “the decisions we make today will shape the opportunities available to future generations.” Cunningham echoed this sentiment, asserting that London’s housing crisis is a direct result of political decisions and can therefore be resolved through political action.

The report outlines five key areas for intervention, designed to provide a blueprint for a future Conservative or Reform administration in Westminster or City Hall. These include the establishment of two new Development Corporations in Southern Tower Hamlets and the Old Kent Road Bakerloo line extension corridor, alongside granting expanded powers to the existing Old Oak and Park Royal Development Corporation. A significant proposal involves large-scale estate regeneration, projected to deliver 500,000 additional homes by doubling the density of London’s ageing post-war estates. The report also advocates for the release of 2,293 hectares of Strategic Industrial Land located near transport links and better utilisation of public land through five-year asset management pipelines.

Further recommendations focus on streamlining planning processes. The report proposes embedding a strong presumption in favour of brownfield development within the London Plan, coupled with the removal of Biodiversity Net Gain requirements for London brownfield sites and raising environmental impact assessment screening thresholds. It also suggests extending full expensing to cover brownfield regeneration projects. Additionally, the report calls for expanding homeowners’ rights to develop their properties, more efficient use of London’s social housing stock, and the removal of various planning and regulatory requirements that are currently seen as stifling development under both the London Plan and national policy.

The authors highlight that London faces the most acute housing need in the country, requiring an estimated 1.85 million additional homes to meet demand. This is against a backdrop where housing starts have plummeted to their lowest levels since the Second World War. Such a significant deficit underscores the urgency for a substantial increase in housing delivery to tackle the capital’s long-term housing shortage and ensure it remains a city of opportunity and growth for future generations.

Why this matters: The report addresses the pressing housing affordability crisis in London, which impacts millions of residents and has wider economic implications for the UK. Its proposals could significantly alter urban development and housing policy if adopted by future administrations.

What this means for you: What this means for you: If these proposals are adopted, London homeowners could see expanded rights to develop their properties, while first-time buyers might benefit from increased housing stock, potentially stabilising or moderating price increases in the long term. Landlords could face changes in property development regulations and the availability of new housing. The focus on regeneration could transform local areas, but also lead to significant construction activity.

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