Labour Sets Sights on Housing Revolution with 1.5 Million New Homes

In a bold move to tackle London’s deepening housing crisis, the Mayor of London has unveiled plans to double the city’s housing output over the next decade, targeting nearly one million new homes by 2035.

With urban brownfield sites offering space for only 40,000 new homes per year, the Mayor is proposing a controversial but pragmatic shift: opening up sections of the underused greenbelt, dubbed the “grey belt”, for selective housing development. These areas, often far from lush or scenic, include neglected sites like disused garages and industrial lots that technically fall under greenbelt protection.

By building on lower-cost grey belt land, City Hall aims to unlock large-scale development while easing pressure on affordable housing delivery, which has long been constrained by sky-high land prices in central zones. Critics argue that current policies unfairly load the cost of social housing onto new buyers, driving up prices. A more balanced funding approach through general taxation, some argue, could help expand social housing and make all homes more affordable.

Still, the Mayor faces limits: while he can influence major planning decisions and champion transport projects like the Bakerloo and DLR extensions, he cannot override local councils or directly initiate housing schemes. However, history shows that infrastructure upgrades spur development,think of the Elizabeth line or the DLR’s impact.

A forward-thinking proposal, such as an orbital rail or tram system skirting London’s outer edge, could spark a “ring of pearls” effect, clusters of new, connected communities around Greater London.

For now, change is still on the horizon. A consultation launched today will shape the new London Plan, with results expected in 2026 and implementation in 2028, meaning significant development likely won’t begin until 2030.

The path to a million homes is set but it’s a marathon, not a sprint.