The government has launched an emergency housebuilding package targeting London, removing key planning barriers and unlocking up to £11.7 billion in funding to accelerate housing delivery. The measures, announced by Housing Secretary Steve Reed and London Mayor Sadiq Khan on 26 March 2026, centre on planning reform and developer incentives to move stalled projects off the ground.

What's changing in planning from May 2026

The Mayor's expanded call-in powers take effect in May 2026. From that date, applications involving 50 or more homes now fall under the Mayor's discretionary approval power, whereas the threshold previously sat higher. This means more decisions transfer from local councils to City Hall, creating a centralised approval bottleneck you need to plan around.

The government has also removed Greater London Authority (GLA) density restrictions on developments meeting the 20% affordable housing threshold. In practical terms this means: if your site is in London and you commit to 20% affordable housing or above, the GLA's density caps no longer apply. The density restrictions previously limited how many homes per hectare could be built, so their removal adds potential capacity to existing sites.

Planning permission for developments with 20% or more affordable units gets fast-tracked. No timeline is specified in the announcement, but you should expect shorter consultation periods and accelerated local authority processing once applications land under this category.

Who must comply and why the timeline matters

Any developer or landowner with a stalled London scheme should assess whether resubmitting under the new fast-track criteria makes commercial sense. The cost-benefit calculation is straightforward: higher affordable housing percentage versus planning speed and certainty.

The Building Safety Regulator has already cleared nearly all legacy Gateway 2 cases in 12 weeks, approving 10,500 new homes nationally (3,800 in London). This signals the government's capacity and intent to move applications at pace. The 88,000-home annual target set for London indicates government pressure on local authorities to approve more applications more quickly.

The Community Infrastructure Levy (CIL) is being suspended temporarily to reduce developer costs. CIL is a per-square-metre charge levied on new development to fund local infrastructure. Its removal during this emergency period reduces your upfront costs, though the suspension's duration remains unconfirmed. You should clarify this with your local authority before finalising project economics.

Funding and the Developer Investment Fund

Up to £11.7 billion from the £39 billion Social and Affordable Homes Programme is being directed to London housing delivery. The government has also created a £324 million Developer Investment Fund specifically for unlocking stalled sites. If you hold a site that planning approval has cleared but funding constraints are blocking, you may wish to contact your local council about accessing this fund.

Beam Park, a 4,000-home regeneration project, has already unlocked 1,500 homes under the emergency measures. This demonstrates which schemes the government is prioritising - large, mixed-tenure, capital-intensive projects with existing planning permission but cash-flow stalls.

The deadline for most changes is TBC beyond the May 2026 mayoral call-in threshold, but the pace of Gateway 2 approvals and the funding allocations suggest you should treat this as an immediate opportunity window. Consider instructing your planning adviser to audit your London portfolio against the fast-track criteria within the next two weeks. Any site that can credibly hit 20% affordable housing deserves a resubmission strategy.