Scrapping Biodiversity Net Gain (BNG) requirements for London brownfield sites, alongside raising environmental impact assessment thresholds, could unlock hundreds of thousands of new homes in the capital, study claims.
The report from the Centre for Policy Studies and Onward identifies five categories of site with the potential to deliver large-scale housing without touching the green belt, including the release of over 2,000 hectares of Strategic Industrial Land near transport links and doubling density on ageing post-war estates.
It also argues for a strong presumption in favour of brownfield development embedded in the London Plan, combined with scrapping BNG requirements for London brownfield, raising environmental impact assessment screening thresholds, and extending full expensing to cover brownfield regeneration.
London faces its worst housebuilding crisis since the Second World War, according to the study. Between 2021/22 and 2023/24, the rest of England delivered 94% of housing targets, while London managed just 36%, with only 4,170 homes started in 2024/25 despite the population growing by nearly 100,000.
The report's authors argue that meeting existing housing targets alone would generate £15bn in economic activity and over £6bn a year in tax receipts, with 1.85 million additional homes needed to resolve the capital's shortfall.
Shadow Secretary of State for Housing, Communities and Local Government, James Cleverly MP described the report as a ‘compelling contribution’ to the debate about London’s future.
Reform UK’s candidate for Mayor of London, Laila Cunningham, said London’s housing crisis was ‘the predictable result of political decisions’ made by ideologically motivated politicians.
