The new London Plan will aim to deliver 558,000 new homes by 2037, with the streamlined 20-year strategy pledging to make it easier to build affordable homes and drive economic growth.
Mayor of London Sir Sadiq Khan said the newly published draft plan will set out a blueprint for a greener and more prosperous London and introduce new planning policies to ensure the capital remains a world-leading city for investment and business.
The mayor added that the plan would also focus on revitalising high streets and town centres, and unlock affordable workspace, industrial land and key business infrastructure.
It will also aim to create space for data centres and economic clusters for AI, life sciences and other growth sectors.
The streamlined plan is nearly half the length of the 2021 plan, which Khan said would reduce the burden on developers, and will aim to take a more flexible, responsive approach to affordable housing.
Sir Sadiq Khan in June 2026. Credit: David P Maynard, Creative Commons
He added that it will provide the blueprint for building a fairer, greener and more prosperous London, and will try to build as many affordable homes as possible, despite the “perfect storm” facing housebuilding.
The framework will aim to deliver up to 558,000 new homes by 2037, and the plan says 10% of the 10-year target will need to be met through the release of green-belt land.
The wider target represents a 38% drop on the level proposed last year in an initial consultation, and just slightly higher than the current plan’s target.
The draft plan adds that this target will only be possible with the right national support, such as investment in key transport infrastructure to help unlock large housing projects.
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.
“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 high streets and support the industries that will be crucial to London’s future economic success.”
Earlier this week, it emerged that London had missed its minimum revised delivery targets for affordable housing between 2021 and 2026 by around a fifth (19.5%), as housebuilding across the capital continues to struggle.
A 13-week consultation has been launched seeking views on the draft plan from Londoners. It will run until 15 October 2026.
Commenting within the mayor’s announcement, Fiona Fletcher-Smith, group chief executive of L&Q, welcomed the draft plan’s ambition to create the conditions for sustainable growth and affordable housing delivery.
“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.”
Clare Miller, group chief executive of Clarion Housing Group, said: “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.”
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