Money from planning arrangements on new office schemes could raise £200m towards London mayor Ken Livingstone's pledge to have 50% affordable housing on all new developments.
London Residential Research has estimated that at least £200m could be raised by the planning agreements, used by some London boroughs, that tax "gain to stock" rates at a rate of £50 per ft2 for commuted payments towards social housing.

LRR said developers would be reluctant to provide on-site housing for commercial reasons.

But an offer of £50 per ft2 would not deter developers, it was felt, because councils such as Camden and Westminster already have similar arrangements in place and they are working successfully.

Developers had accepted the principle of office development generating housing gain, LRR said.