Labour MPs and Supporters Push Back Against Affordable Housing Cuts
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Labour MPs urge ministers and Mayor Sadiq Khan to reject plans that could worsen London’s homelessness crisis
Labour MPs are calling on ministers and the Mayor of London, Sadiq Khan, to scrap controversial proposals to reduce affordable housing quotas in the capital. The plan, designed to stimulate homebuilding, would allow developers to qualify for fast-track planning approval if they promise to build only 20% affordable homes instead of the current minimum of 35%. However, critics argue that such a move could make London’s housing crisis even worse and push thousands more families into homelessness.
Florence Eshalomi, Labour chair of the housing select committee, warned that the proposal undermines the long-term goal of making homes accessible to ordinary Londoners. She said that solving the housing crisis depends not only on how many homes are built but on how affordable they are. According to her, one of the biggest problems has been the failure, over decades, to build homes that people on regular incomes can afford. Eshalomi added that the problem has been particularly severe in London, where developers often prioritize luxury apartments for profit instead of building for local residents. She emphasized the need to break away from this failed pattern and deliver genuinely affordable housing that meets community needs.
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Stella Creasy, Labour MP for Walthamstow, also voiced her concerns, saying that her constituency has struggled for years with the effects of expensive developments and rising rents. She explained that gentrification has made it harder for working families to live in the communities where they grew up. Creasy urged the mayor to stand firm, stressing that these affordable housing targets are vital. According to her, London desperately needs homes that are genuinely affordable and protections for tenants who are being priced out of their neighborhoods.
Another Labour MP, who chose to remain anonymous, admitted that while the housing shortage in London is serious, the solution should not come at the expense of affordability. The MP said there must be a better way to boost construction without allowing developers to escape their obligations to provide decent levels of affordable housing.
Government officials are aware that London faces a major slowdown in construction. Reports from the Centre for Policy Studies revealed that only 4,170 homes were started in the 2024–2025 period, a sharp decline compared to previous years. Projections from consultancy firm Molior suggest that by early 2027, there may be as few as 15,000 homes under construction across the city. These alarming figures have pushed both Sadiq Khan and Housing Secretary Steve Reed to look for ways to revive the sector.
An internal government memo obtained by that among the options being considered are cutting affordable housing quotas, reducing levies on developers, and increasing subsidies for affordable homes. The levy, which helps fund essential local infrastructure like roads and GP practices, could be temporarily reduced to encourage developers to start new projects. However, housing campaigners warn that these quick fixes could lead to deeper social problems in the long run.
Mairi MacRae, director of campaigns and policy at Shelter, criticized the proposed changes, saying that they would allow developers to “wriggle free of their responsibilities.” She argued that while the government may see this as a way to boost construction, it could leave many families stuck in poor living conditions with no access to safe, affordable homes. MacRae pointed out that if the city continues down this path, communities will keep suffering as families endure overcrowded and damp homes, watching mould spread across their walls with no secure housing in sight.
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A government source acknowledged the severity of the crisis, admitting that housebuilding in London is in decline. Since 2020, the number of homes under construction for private sale or rent has fallen by a third to around 40,000. Only a little over 3,000 affordable homes were started in 2023–2024. The source added that although the government has increased funding for London’s affordable homes programme, more needs to be done to address the emergency. They emphasized that working with the mayor is crucial to “get the capital building again” and ensure Londoners have access to both social and affordable housing.
London’s housing future now hangs in the balance. The debate over affordability versus development speed is far from over, and what happens next could shape the city for generations. For the millions of Londoners struggling to find a home they can afford, this battle is not just about policies and percentages it’s about survival, security and the right to live in the city they love.
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