Sadiq Khan unveils draft London Plan with focus on affordable homes, economic growth and greener development
London’s long-term blueprint for growth is set for a major overhaul after Mayor Sadiq Khan published a draft of a new London Plan that will shape development across the capital over the next two decades.
The draft strategy sets out City Hall’s priorities for housing, economic growth and environmental protection, with a particular emphasis on increasing affordable housing while supporting investment in industries expected to drive London’s future economy.
City Hall says the revised plan has been streamlined compared with the current version published in 2021, reducing its overall length while retaining planning standards designed to support the quality of new development.
Housing remains one of the central themes of the document. The draft plan proposes a framework that could support the delivery of up to 558,000 new homes by 2037, although City Hall says achieving that figure will depend on continued national backing, including investment in major transport infrastructure needed to unlock large housing sites.
The Mayor is also proposing a more flexible approach to affordable housing delivery, reflecting the economic pressures facing the construction industry in recent years. Rising construction costs, labour shortages and wider economic conditions have all affected housebuilding across London.
Alongside housing, the draft London Plan seeks to strengthen London’s role as the UK’s leading economic centre by making space available for industries expected to expand in the coming years.
The proposals include support for data centres, artificial intelligence, life sciences and other strategic industries, while also safeguarding land needed for logistics, freight and essential infrastructure. In some highly accessible locations, industrial land could also be released for housing where appropriate.
The document also highlights London’s town centres and major commercial districts as key drivers of future growth. The Central Activities Zone would continue to receive strategic support, while specialist economic clusters across the capital would be encouraged to develop around emerging industries.
City Hall is also proposing measures intended to support London’s visitor economy and cultural sector. Oxford Street’s planned transformation is identified as an important part of reinforcing the West End’s international appeal, while music venues, theatres, pubs and other cultural spaces would continue to receive planning protection.
High streets are another focus of the strategy, with proposals aimed at helping town centres adapt to changing shopping habits by supporting cafés, restaurants, pubs, shops and independent businesses.
The plan prioritises new housing on previously developed brownfield land wherever possible while promoting cleaner air, sustainable transport and greater biodiversity. It also encourages developers to incorporate design measures that help buildings remain cooler during periods of extreme heat, including natural ventilation, shading and building orientation. The draft makes clear that air conditioning would still be permitted where appropriate, particularly in buildings such as hospitals, care homes and schools.
According to City Hall, the draft builds on more than two decades of strategic planning since London’s first city-wide development framework was introduced in 2004. Previous plans introduced policies on affordable housing, sustainable development and neighbourhood planning, with the latest version intended to update those priorities for changing economic and environmental conditions.
Londoners, businesses and organisations will now have the opportunity to comment on the proposals during a 13-week public consultation running from 16 July until 15 October 2026, before the final version of the London Plan is prepared.
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