Affordable rent caps to be prevented under London Plan alterations

Under the Mayor's proposed early minor alterations to the London Plan, boroughs within the capital will be prevented from setting rent caps or targets for affordable rented homes in their local development frameworks. New affordable housing can therefore be set at up to 80% of the market rate in London under the Affordable Rent mechanism set out in the Government's Affordable Homes Programme.

With 13 votes against the proposals and nine in favour, the Assembly's labour group, which accounts for 12 of the Assembly's 25 members, did not secure the two thirds majority vote required to block the Mayor's proposals.

The proposed alterations to the London Plan set out that boroughs should not attempt to set rent targets for affordable rented housing in their local development frameworks because this would be "likely to impede maximization of affordable housing provision London-wide".

Local Labour London Assembly member John Biggs said in a statement that the vote was a "hammer blow" and that it signalled the "death of truly affordable housing in London".

“The Mayor’s changes will make London’s housing crisis even worse," Biggs said. "They will now push affordable housing out of the reach of many Londoners on low, and in some areas, modest incomes. This will also drive up rent, increase land prices and further distort London’s housing market. Combined with the welfare reforms the Mayor’s changes will make huge swathes of inner London even more unaffordable than they already are," he added.