Hackney forces Sadiq Khan retreat on affordable housing cuts

Plans to let developers cut the proportion of affordable homes in new Hackney schemes have been scaled back in the wake of a legal challenge led by the borough’s mayor, Zoë Garbett.

Last month Hackney joined Tower Hamlets and Lewisham in applying for a judicial review of Sir Sadiq Khan’s decision to let developers reduce the share of affordable homes in new London projects from 35 per cent to as little as 20 per cent.

The three boroughs argued the mayor had failed to follow proper statutory process or consult local authorities before the change.

In a partial climbdown set out in this week’s Draft London Plan, that 20 per cent rate will be scrapped in 2028 and each borough handed its own affordable housing quota — with Hackney’s returning to 35 per cent.

A qualified victory

Garbett claimed the concession as a win for the borough, but warned it left residents exposed in the meantime.

“In Hackney, this announcement is good news for every family trapped in unsuitable temporary housing, every household waiting years for a genuinely affordable home, and every private renter living in insecure accommodation,” she said.

“But it still leaves a two-year period where the mayor of London will give the green light for developers in Hackney to cut back on affordable homes — while in other boroughs they are let off the hook indefinitely.

“We’re pleased the mayor has listened, but will keep the pressure on and continue the fight for affordable housing in London.”

A three-band system

Under the Draft London Plan, published on Thursday, the single city-wide threshold for fast-tracking developments is replaced by a system that varies by location.

London’s 32 boroughs and the City of London have been divided into three bands, with the affordable housing threshold set at 35 per cent for 11 inner authorities and Richmond, 25 per cent for eight more boroughs, and 20 per cent for outer London.

Deputy mayor for planning Jules Pipe said the approach reflected “the evidence base showing varying viability outcomes across London”, adding that City Hall’s “ambition remains that eventually, London will get back to 35 per cent affordable housing, when economic conditions allow”.

The original cut, agreed jointly by Sir Sadiq and central government in October 2025, offered developers a fast-tracked planning application in return for committing to the lower target. City Hall argued the move was needed to speed up decisions and unlock stalled sites.

‘Desperate’ need in the borough

Garbett, who took office in May, has described Hackney’s housing situation as “desperate”. Almost 8,000 households are on the council’s waiting list and 3,500 families are living in temporary accommodation.

The borough’s own planning rules require developers to offer at least 50 per cent of new homes at affordable levels, subject to a viability assessment — more than double the new London-wide minimum.

The concession comes days after a London Assembly housing committee report found the mayor had missed even his downgraded affordable homes target, delivering 14,335 starts under the 2021–2026 programme against a revised range of 17,800 to 19,000.

The legal action was co-ordinated across three boroughs run by very different administrations: Aspire-controlled Tower Hamlets and Green-controlled Hackney and Lewisham, both of which Labour lost in May.