The math of Khan

Headnote

Affordable housing As London mayor Sadiq Khan "nudges" developers towards 35% affordable housing in new guidance, with 50% a "long-term strategic aim", Tim Hellier and Sheridan Treger question whether that adds up for developers in the real world

Mass government housebuilding has been off the table for decades. So politicians of all hues have long treated the development industry as if it could (and should) be the proverbial goose that lays the golden egg of meeting the UK's wide spectrum of housing need. Of late, much tinkering with the goose's environment is being proposed in order to prompt it to lay lots more eggs, and for more of them to be affordable. In his Autumn Statement, for example, chancellor Phillip Hammond acknowledged that spiralling house prices are damaging productivity, announcing the imminent publication of a housing white paper to include a comprehensive package of reforms to increase housing supply.

Affordable housing in London

New homes in traditional affordable housing categories are certainly not appearing in hoped-for numbers. Figures from the Department for Communities and Local Government show these down by more than half against last year's statistics. The mayor of London, Sadiq Khan, has long suggested setting ambitious targets for developers, with a "strategic, London-wide target" of 50% affordable housing mooted in his overall vision for the capital, "A City for All Londoners", released in late October.

And yet planning legislation requires individual planning applications to be decided in accordance...