Public & Private

There has been much argument over London mayor Ken Livingstone's demand in his London Plan that half of all new homes built in the capital be affordable. Certain interest groups claim this is impossible and may even result in fewer homes being built.

At the London Housing Federation, we believe this target is not only achievable but essential if London is to operate as a world-class city. The 50% target is not some random figure chosen at the mayor's whim.

The feasibility of providing affordable housing through planning gain depends on many factors – the existence and level of government funding, the price of land and local authority planning policies, to name but a few. These have all been considered in a report commissioned by the Greater London Authority and carried out by Nottingham Trent University and the market research group, Three Dragons. This clearly shows that private residential developments can support 50% affordable housing in nearly two-thirds of London boroughs. For the other third, a 35% affordable housing target is more readily achievable. These recommendations have been taken on board in the draft London Plan.

Cynical readers may be wondering if the Three Dragons findings were not a little too convenient to be true. Well, they are backed by the government-sponsored evaluation by Atis Real Weatherall.

And in reality, in some boroughs, a 50% target is already being achieved. Hammersmith and Fulham is currently developing 53% affordable housing from all residential developments. Working within the council's robust planning policy, Imperial Wharf is being developed by St George and Notting Hill Housing Group – a mixed-tenure, mixed-use development which meets Livingstone's 50% affordable housing target. The development of 200 homes on the site of Queen Charlotte's Hospital by Crest Nicolson and Acton Housing Association has achieved an impressive 75% affordable housing. Camden is currently considering only granting planning permission for developments where a 50% target is met.

In some boroughs, a 50% target is already being achieved, but there is still great inconsistency

But while some boroughs are ahead of the game, the lack of a pan-London strategic framework means there is great inconsistency between boroughs. The end result is that the current London average for the proportion of affordable housing from new development is a meagre 14%, a statistic unlikely to make a dent in the housing crisis.

So full marks to the mayor, who, despite not having any direct housing responsibilities, has pushed housing issues to the top of London's agenda. Something has to change – for the sake of the thousands of struggling Londoners. The London Housing Federation has long been campaigning for a strategic target for affordable housing. Ideally, London needs to attract and keep a range of economically active people if it is to function as a world-class city, and to help create sustainable mixed-tenure, mixed-income communities.

The London Housing Federation is also lobbying government for increased investment in affordable housing and the infrastructure needed to support any new housing. But housing can't be seen in isolation. If we are to create neighbourhoods that people will want to live in, we need schools, transport links, health services and other key services as well. As much as possible must be achieved through the planning process – but we are not naive. We know there are limits to what the private sector can provide while remaining profitable. It's these limits that are often the bone of contention and it is here that we need open constructive dialogue.