Existing planning constraints and guidelines on density limits have been removed in the new draft London Plan, which will allow homebuilders to maximise the use of land in the city by developing more homes on them than existing nearby schemes that would have had to follow previous guidelines.
Councils will work with developers and housing associations on a case-by-case approach to each site to determine its capacity based on surrounding infrastructure.
The draft London Plan contains a target to deliver 65,000 homes per year in the city, roughly double the current rate of homebuilding. Mayor Kahn believes there is a capacity for 24,500 homes a year to be built in London's small sites - typically those between one and 25 homes – and asks boroughs to approve applications for small developments unless they do not meet strict design standards.
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Overall, the Plan includes the Mayor's key strategic housing commitment for 50% of all new homes built to be genuinely affordable.
Mayor Khan said: "With London's population expected to increase by 70,000 every year, reaching 10.8 million in 2041, it's vital we properly plan for growth with new affordable homes in every area of the capital.
"I am using all of the powers at my disposal in my first draft London Plan to tackle the housing crisis head on – removing ineffective constraints on homebuilders so that we can make the most of precious land in the capital to build more homes in areas with the best transport links.
"My London Plan sets out how we are planning for the challenges our great city faces, but crucially focuses on my vision of a London that welcomes growth, celebrates its diversity and ensures every Londoner gets the opportunity to fulfil their potential."
Brian Berry, Chief Executive of the Federation of Master Builders, welcomed the move.
He said: "Making better use of the many existing small sites that are scattered over the capital is essential if we are to build the number of new homes Londoners need. The London Plan's moves to favour appropriate residential development on small sites is therefore a welcome initiative. It will also boost and strengthen the capacity of small and medium-sized house builders to build more new homes.
"FMB research has consistently shown that a lack of available and viable land is the main factor constraining the ability of small builders to deliver more homes. Indeed, over half of SME house builders believe that the number of small site opportunities is, if anything, decreasing. The London Plan goes further to address this issue than the proposed changes to national policy laid out in the Government's Housing White Paper. In order to reach the 66,000 new homes London needs to build each year, this renewed emphasis on small sites is vital."
(LM)
