Councils take legal action over affordable housing plans

Three London boroughs are taking legal action against the Greater London Authority (GLA) over proposals to reduce affordable housing requirements for private residential developments.

Hackney, Lewisham and Tower Hamlets councils have launched a Judicial Review challenge at the High Court, arguing that plans to lower the affordable housing threshold from 35% to 20% have not been properly justified or consulted upon.

Under current planning rules, developers can access a fast-track planning route if at least 35% of homes in a scheme are classed as affordable. However, proposals announced by the Mayor of London last year would reduce that benchmark to 20% in an effort to encourage more housing development.

The legal challenge is being jointly brought by the three boroughs and is supported by Lambeth, Southwark, Haringey and Waltham Forest councils.

In a statement, Tower Hamlets Council said the proposed change to the London Plan had not followed the statutory process required for amendments, lacked robust evidence to support a blanket reduction across all boroughs and was introduced without “fair and meaningful consultation”.

The council said evidence submitted to the High Court highlighted concerns about the potential impact on the delivery of affordable housing at a time of growing housing need across the capital.

According to the borough, social housing waiting lists are at their highest level in a decade, while around 183,000 Londoners are homeless and more than one million people are living in overcrowded or substandard housing.

Lutfur Rahman, Executive Mayor of Tower Hamlets, said the councils were acting to prevent a reduction in affordable housing provision and called on city leaders to prioritise the delivery of homes for residents.

He posted on X: ‘We urge the Mayor of London and Andy Burnham to prioritise the homes people need over the profits of developers.

‘We won’t stand by while London is turned into an investment asset for the super-rich rather than a place where ordinary Londoners can afford to live.’

Supporters of the proposed changes argue that reducing affordable housing requirements could help unlock stalled developments and increase overall housing supply in a challenging market.

The case is expected to test whether City Hall followed the correct legal procedures in bringing forward the proposed changes and whether sufficient evidence exists to support the revised target.