Draft London Plan Reveals Controversial Green Belt Loss, Data Centre Surge, and Ambitious Housing Targets

London’s aspirations for housing development over the next decade have been adjusted significantly, as indicated by the Mayor’s newly unveiled spatial development strategy. The Draft London Plan, released recently, reveals that City Hall is aiming for the construction of 558,000 homes by 2037, a substantial decrease from the Government’s ambitious target of 850,000 homes for the capital. The plan is set to be adopted in 2028, and Deputy Mayor for Planning, Jules Pipe, emphasised that housing remains the foremost priority for City Hall moving forward.

During the presentation of the Draft London Plan, Mr Pipe asserted that the 2037 target is more “credible” compared to the Government’s figure. He acknowledged, however, that even this self-imposed target may not be achievable under current circumstances, although he believes it could become feasible within two years. “This is not about diminishing London’s ambitions, but about devising a new London Plan that is realistic,” he stated. The Deputy Mayor underscored the necessity for substantial infrastructure development to facilitate the construction of 850,000 homes, asserting that while the target of 558,000 is not immediately credible, it is a plan that will come into effect in 2028, contingent on certain economic improvements and increased funding for affordable housing.

Infrastructure Investment as a Key Consideration

Mr Pipe highlighted the pressing need for significant infrastructure projects, such as the Bakerloo Line extension, to meet government housing targets. Lucinda Turner, Assistant Director of Planning and Regeneration at the Greater London Authority (GLA), reiterated the importance of a realistic approach, explaining that the 850,000 figure was taken as a starting point. “At this point, 558,000 homes over ten years is the maximum realistic number – and that in itself is ambitious. We want to meet the housing demand, but it will take time beyond this ten-year period,” she stated.

Critics have voiced strong opposition to the Draft London Plan, with Reform UK Assembly Member Alex Wilson describing it as a “self-contradictory work of fiction.” He noted that instead of recalibrating housing targets to reflect the reality of around 10,000 housing starts annually, the Mayor has increased targets from the previous objective of 522,000 to 558,000. Wilson expressed confidence that Londoners would see through what he termed baseless proposals, reflecting a broader dissatisfaction with the current administration’s handling of housing issues.

Affordable Housing Targets Vary by Borough

The Draft London Plan introduces a differentiated approach to affordable housing, whereby the percentage required will vary depending on the borough in which a development is situated. London’s 32 boroughs and the City of London have been categorised into three bands: a 35 per cent affordable housing requirement for 11 inner authorities and Richmond, 25 per cent for eight additional boroughs, and 20 per cent for outer London authorities. Mr Pipe explained that this approach acknowledges the differing viability outcomes across the capital, with a long-term ambition to return to a 35 per cent affordable housing target when economic conditions allow.

Green Party London Assembly Member Benali Hamdache condemned the plan, describing the set affordable housing target of 20 per cent as a betrayal of Londoners, suggesting it favours developers over the pressing needs of residents. He argued that the current model of constructing luxury flats in the hope of sufficient council housing is fundamentally flawed and urged the Mayor to reconsider this approach in favour of increased council home construction.

Controversial Use of Green Belt Land

The Draft London Plan has also reignited controversy regarding the potential development on London’s Green Belt areas. City Hall has signalled its intention to permit a “limited and selective release” of Green Belt land for new housing, albeit with strict conditions to maximise affordable housing, ensure high-quality design, and enhance biodiversity and access to green spaces within developments.

In line with the Mayor’s ambition to position London as a leader in green data centres and AI infrastructure, City Hall has proposed its first dedicated policy regarding the construction of new data centres. Currently, 60 out of 100 planned data centre units in the UK are earmarked for London. Megan Life, Assistant Director of Environment and Energy at the GLA, confirmed that a new approach is being developed to balance economic benefits with environmental considerations. The Draft London Plan states that new data centres must offset any negative impacts on residents by providing benefits such as affordable workspace and improvements to local infrastructure.

Concerns Over Environmental Impact

However, Mr Hamdache expressed concern over the proposal to establish data centres in urban areas, asserting that such developments may not be environmentally sustainable. He drew parallels with Ireland, where the growth of data centres has consumed renewable energy resources, suggesting that London’s climate ambitions could be jeopardised by embracing an energy-intensive industry. He cautioned against prioritising data centre development in areas already well-served by transport, particularly when land scarcity necessitates building on Green Belt land.

Following public consultation and an independent review, the London Plan will require approval from the Secretary of State for Housing, Communities and Local Government before it can be formally adopted. Officials have indicated their commitment to ensuring the strategy aligns with the National Planning Policy Framework, which outlines the Government’s planning policies for England. A spokesperson from the department stated: “We expect the Mayor to take all necessary measures to accelerate housebuilding and will carefully review the draft London Plan to ensure it maximises delivery across the capital.”

In the broader context, the Government is committed to addressing London’s housing needs through an overhaul of the planning system, increased funding for social housing, and emergency measures aimed at unblocking stalled development sites.