Positive Signs for Home Sellers as Housebuilding Rules Shift
Easing housing rules promises growth for sellers nationwide.
London’s property market has received a boost with reports that the Greater London Authority is set to reduce the affordable housing requirement for developers. This change could see the current 35% quota lowered to around 20%, with some industry voices suggesting it could drop even further. For homeowners considering selling, this is welcome news as it could help breathe new life into the market.
Developers have long argued that the 35% threshold has made many projects financially unviable, creating a bottleneck that slowed down construction across the capital. With fewer homes being built, demand has consistently outstripped supply, keeping prices high but limiting overall market activity. By easing these restrictions, the mayor and the government aim to unlock stalled developments and encourage new building at a pace that better reflects London’s needs.
Recent figures underline the scale of the challenge. Between April and June, only 347 affordable homes were started, compared with the 88,000 new homes that experts say London needs each year. Although City Hall data shows an increase in affordable housing starts from 2023 to 2025, the numbers still fall far short of demand.
While the immediate impact is centred on London, the potential ripple effects are important for sellers across the UK. London often sets the tone for national housing trends, so if easing requirements stimulates growth, other regions may look to adopt similar approaches. Developers and investors could also shift strategies, with a busier London market encouraging healthy competition nationwide. Furthermore, the government will be watching closely, and success in the capital could inspire broader reforms that help to accelerate housebuilding targets elsewhere.
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