Mayor publishes streamlined draft London Plan to boost affordable housing and support growth, jobs and the economy of the future

Mayor publishes streamlined draft London Plan to boost affordable housing and support growth, jobs and the economy of the future

• Mayor unveils new draft London Plan to unlock more affordable housing, deliver good growth and support the industries that will be crucial to London’s future economic success   
• The new bold vision builds on London's global strengths and introduces new planning policies to ensure the capital remains one of the world's leading cities for business, innovation, culture and investment
• Londoners are invited to help shape the new London Plan by taking part in the consultation, running from 16 July to 15 October 2026

The Mayor of London, Sadiq Khan, has today published a draft of his new London Plan. It sets out a bold vision for the capital and is a blueprint for building a fairer, greener and more prosperous London for everyone over the next two decades.

 The new plan will make the best possible use of City Hall’s planning powers to achieve two key objectives: to build as many affordable homes for Londoners as possible and to deliver economic growth that benefits Londoners, all while continuing to meet the Mayor’s ambitious green commitments.

 At nearly half the length of the 2021 plan, the new draft London Plan is streamlined to reduce the burden on developers while retaining vital quality standards.

 Since becoming Mayor, Sadiq has made affordable housing a top priority and has delivered significant progress. This includes building more new council homes than at any time since the 1970s and, prior to the pandemic, completing more new homes in London than at any time since the 1930s.  However, there has been a perfect storm facing housebuilding due to a combination of high interest rates, the rising cost of construction materials, the legacy of the pandemic, a shortage of skilled workers and the lasting impact of Brexit.

The new draft London Plan sets out a new approach that will enable London to meet the challenges we face, maximise affordable housing delivery and stimulate good growth.  A key part of the approach will be to strengthen London's position as the UK's economic powerhouse by creating the conditions for businesses to invest, grow, innovate and support good jobs across the capital.

 Priorities in the draft London Plan include:

• Supporting London’s future prosperity: The plan will create space for data centres and economic clusters for industries that will be vital to London’s future economy.  This includes AI and life sciences. The plan will ensure there is sufficient land available to meet the needs of modern and efficient industries, such as data centres, logistics, freight and other strategic infrastructure, whilst freeing up industrial land in highly accessible locations for housing. This follows the Mayor's recent pledge to make London the global epicentre for green data centres and AI infrastructure. 
• Driving growth across London’s economy:  The plan will help to strengthen the Central Activities Zone as well as support Strategic Economic Clusters across London – hotspot economic areas where specialised industries can drive economic growth.     
• Supporting world-leading destinations and the 24-hour economy: The transformation of Oxford Street will reinforce the West End’s position as a global destination for retail, culture, entertainment and tourism. The new London Plan will protect music venues, theatres and cultural spaces that underpin London's £64 billion creative economy and will promote London’s nightlife through strategic licensing.  The plan recognises that pubs and cultural venues are a unique and intrinsic part of London’s fabric and will ensure they are protected.
• Revitalising high streets and town centres: The new London Plan will help local town centres adapt to changing consumer habits by supporting shops, cafés, pubs, restaurants and independent businesses, creating vibrant and resilient communities across London.
• Protecting the spaces businesses need to thrive:  Affordable workspace, industrial land, logistics and strategic infrastructure will ensure businesses have the space they need to start up, grow and succeed in the capital.
• Delivering the homes Londoners need, maximising affordable housing: A new framework will help to deliver as many as 558,000 new homes by 2037. The draft plan shows this will be possible but only with the right national support, including investment in key transport infrastructure that will help to unlock large housing projects.  Reflecting the difficult economic conditions for housebuilding in London, the draft London Plan also sets out a more flexible, responsive approach to affordable housing. This will ensure the highest possible number of new affordable homes are built in London in the years to come.    
• Creating a greener capital: The draft London Plan will demonstrate leadership in improving and protecting the environment - promoting greener neighbourhoods, cleaner air, sustainable transport and increased biodiversity.
• Building more affordable homes while boosting access to green spaces: The draft plan prioritises brownfield development and will ensure housing delivery on brownfield sites is accelerated wherever possible. But this alone will not be enough to meet London’s housing needs. That’s why - as the Mayor set out in a keynote speech last year - the draft London Plan will allow some limited and selective release of Green Belt land.  There will be strict requirements in place for this to happen, which include: maximising the level of affordable housing on the land; ensuring high-quality housing design and good transport connectivity; and increasing biodiversity and access to good-quality green spaces as part of developments. 
• Building climate resilience into new development: As London experiences hotter weather, including more heat waves, the draft London Plan will encourage developers to use practical design features—such as shading, natural ventilation and building orientation—to help buildings stay cool naturally. The plan does not ban air conditioning, which can be incorporated into new developments alongside these design features. This may be especially important for hospitals, care homes and many schools to protect children, older people and vulnerable groups from extreme heat. 

The new draft London Plan builds on more than 20 years of strategic planning for the capital.  The first London Plan was published in 2004, providing the framework for managing growth across the city and enabling the Mayor to shape development in a way that supports social, economic and environmental priorities.

Successive London Plans have introduced nationally significant innovations, including the threshold approach to affordable housing - and some of the UK's most ambitious planning policies to support net-zero development, sustainable design and greener neighbourhoods. This new draft London Plan builds on this established approach to ensure London maintains a clear, strategic framework to guide sustainable growth over decades to come.

 Londoners are invited to help shape the future of the capital through a 13-week public consultation, running from 16 July to 15 October 2026.  

The Mayor of London, Sadiq Khan, said:  “London’s success depends on how well we plan for growth and the choices we make about the kind of city we want to be.  This new draft London Plan is a blueprint for how we can continue to build a fairer, greener and more prosperous London for everyone over the next 20 years. 

 “There are two key objectives that underpin this new plan: to build as many affordable homes for Londoners as possible in the years ahead, and to boost economic growth by creating the conditions for businesses to grow and thrive across the capital, including the industries of the future, like AI and life sciences. 

 “Over the last 10 years, we have built a record number of homes, but it’s a difficult time for housebuilding now due to a combination of high interest rates, the rising cost of construction materials, the legacy of the pandemic and the lasting impact of Brexit.  The new plan is about doing everything possible to meet the challenges we face on housing, as well as ensuring we deliver good growth, protect London’s nightlife, revitalise local highstreets, and support the industries that will be crucial to London’s future economic success. This is how we can ensure our city remains the best place in the world to live, work and invest for decades to come.”

Fiona Fletcher-Smith, Group Chief Executive of L&Q, said: “We welcome the Mayor’s ambition to accelerate the delivery of affordable homes and create the conditions for sustainable growth across London. At a time when housing need remains acute, a strategic approach that supports investment, unlocks development opportunities and prioritises affordability is essential.

“The draft London Plan recognises both the scale of London’s housing challenge and the importance of partnership in addressing it. We particularly support the focus on maximising affordable housing delivery, making effective use of land, and ensuring that growth is accompanied by the infrastructure, green spaces and services that communities need to thrive.

“As one of London’s largest housing associations, we look forward to working with the Greater London Authority, boroughs and partners across the sector to help deliver the genuinely affordable homes that Londoners need, while creating stronger, more inclusive and sustainable neighbourhoods for the future.”

Darragh Hurley, Chief Executive of Mount Anvil, said: “At Mount Anvil, we welcome the Mayor’s response to the mounting challenges of building more new homes for Londoners. In particular, we are encouraged that to see the focus on new homes delivery in the Draft New London Plan, and ongoing efforts to remove unnecessary roadblocks and face  into challenging trade-offs ”

Dan Wilson Craw, Deputy Chief Executive of Generation Rent said:  “Homes are the foundations of our lives, but too many renters in London are stuck paying unaffordable rents while spending decades on social housing waiting lists. Creating many more genuinely affordable homes will be critical to making sure all Londoners can live and thrive in the capital. It’s particularly important to consider all opportunities to build homes, including close to railway stations in the green belt. We’re pleased to see the Mayor set out this plan and look forward to scrutinising it over the coming months to make sure it delivers for renters.”

James Stevens, Director of Cities at the Home Builders Federation, said: “London’s housing affordability crisis is a challenge to the capital’s economic and social prospects so it is encouraging that the Mayor is focusing on improving the viability of new housing in this draft London Plan. Housing delivery has declined in recent years so a renewed emphasis on reducing administrative complexity and a streamlined planning process is welcome. 

“We look forward to engaging constructively through the consultation to ensure these positive intentions translate into accelerated delivery on the ground.”

Pip Prongué, Executive Managing Director of Wates Residential said:  "Housing is fundamental to London's long-term growth, competitiveness and investability, which is why we welcome a London Plan that seeks to align housing delivery with the capital's wider economic ambitions. The focus on regeneration, brownfield development and creating the conditions for investment reflects many of the challenges and opportunities we see on the ground.

“As one of London's leading regeneration partners, we know that unlocking complex sites and accelerating delivery depends on collaboration. Wates Residential is ready to build on its work with the GLA, boroughs and partners across the sector to deliver the affordable homes and sustainable communities London needs to thrive.”

John Dickie, Chief Executive at BusinessLDN, said: “This new draft London Plan has a critical role to play in shaping development across the city, helping businesses to grow and ensuring the capital remains the best place in the world.

“At a time when developers are facing a perfect storm, it’s welcome that City Hall has listened to calls for this version of the plan to be more streamlined and strategic than the previous iteration. A more flexible approach to delivering the homes that Londoners need, recognising the importance of data centres to the capital’s future growth and taking steps to support the West End’s position as a world-leading destination are also positive steps. We look forward to working with the GLA and other stakeholders throughout this consultation phase and into the examination process next year to help unlock London’s full growth potential.

“With all types of development in London facing severe headwinds, it’s clear that we need to go further and faster to support delivery. As part of this, the new government must devolve powers and resources to enable London to invest in the infrastructure projects that are critical to unlocking sites for housebuilding and development across the city. Innovative public-private financing models are also vital if we are to see the investment that the city needs to support sustainable growth.”

Clare Miller, Group Chief Executive, Clarion Housing Group: "Every day we see what London's housing shortage means for the families on our waiting lists, with many spending anxious years hoping for a stable, affordable home, so we welcome a more flexible approach to viability that will get more of those homes built for those who urgently need them.

"No single organisation can meet London's housing need alone, and Clarion looks forward to deepening our partnership with the Mayor and boroughs across the capital to build the next generation of social and affordable housing."

Christina Calderato, Director of Strategy at Transport for London (TfL), said: “The London Plan recognises the vital role of transport in supporting and unlocking housing and ensuring that development is sustainable – a link this new draft embeds more strongly than ever before. In order to deliver the scale of housing that Londoners need, it will be critical to continue investing in transport infrastructure and commit to schemes including the West London Orbital, Bakerloo line extension and further metro-isation alongside ongoing investment in the existing network.”