More power should be devolved to the London mayor and local authorities, finds report

The London Housing Commission has published a report recommending how to tackle the capital's housing shortage.

Commission head Lord Bob Kerslake said that the "radical measures" included in the report "will go a long way to delivering the volume of quality, affordable homes that the capital desperately needs."

The report makes both short and long term recommendations for the next mayor of London, London local authorities and the government.

The Commission advises that "the next mayor and the 33 boroughs should join forces to strike a major devolution deal with central government" and "form a joint London Housing Committee to coordinate housing policy across the capital".

The devolution agreement should exempt London from the National Planning Policy Framework (NPPF) and give the London Plan the same status as the NPPF, increase the city's borrowing power to enable the delivery of housing and infrastructure and allow London to set its own planning fees and stamp duty rates.

The report also recommends that each borough should be able to adjust their council tax rates for different situations and allow them to create their own landlord licensing schemes.

In exchange for the devolved power, the mayor and London boroughs should commit to delivering 50,000 new homes each year by 2020,"ensure that London has sufficient housing at submarket rents [and] eliminate non-decent housing in the private rented sector by 2025." More specifically, they should identify the potential land to deliver the promised homes, increase the capacity of councils' planning teams to ensure approvals are received quicker and "take an active lead in the nurturing of housing and planning skills in the private and public sector." 

The commission understands these powers cannot immediately be transferred locally and makes shorter term recommendations. These include finding more land, liaising with Transport for London to "review the potential for higher-density development" around transport links, exchanging green belt land near transport links for land in other places and improving the planning process.

On identified land, the mayor and local authorities should ensure that land is turned into new homes, providing more affordable homes and good quality rental properties. The commission suggest different ways in which these targets can be achieved. 

Planning expert Richard Ford of Pinsent Masons, the law firm behind Out-Law.com, said ""The new mayor needs to focus on delivery of his promises. The amount of GLA family land is significant and the mayor has more flexibility there to deliver homes for Londoners but it is much more difficult on private sector land."

"The London Plan needs to be evidenced based and a new London strategic housing market assessment will need to demonstrate the overriding needs of those who live and work in London Borough by Borough to evidence a Londoners first policy position. Clearly the market in London is broad and all sections of the market will need to be served," said Ford.