On 10 March 2015, the Mayor adopted the Further Alterations to the London Plan (FALP), which now forms part of the development plan for Greater London. A key element of the new plan is how the increasing demands for housing in London will be addressed throughout the plan period.

The central population projection figure set out in the FALP anticipates that London's population to rise from 8.2 million in 2011 to 10.11 million by 2036, the equivalent of adding a city the size of Birmingham every 10 years. In addition to meeting housing needs, major infrastructure investment will be required by the increased population of young people and the needs of an ageing population.

Chapter 3 of the FALP recognises the increasing demand for more homes due to population growth and sets out minimum housing supply targets for each Borough up to 2025 based on the 2013 Strategic Housing Market Assessment. All Boroughs are required to deliver more housing than required by the 2011 London Plan targets, with significant increases in Hammersmith and Fulham (68%), Haringey (83%), Hounslow (75%) and Sutton (73%). Tower Hamlets and Southwark have the greatest annual requirements.

The 2013 London Strategic Housing Land Availability Assessment shows that between 2015 to 2025, London has capacity for a least 420,000 additional homes or 42,000 per annum, which is set as the housing delivery target through the plan period. For comparison the 2011 London Plan set a target of 32,200 additional homes per annum. As recommended by the EIP Inspector, the housing delivery target will be reviewed by 2019/20 and periodically thereafter.

The FALP states that in order for Boroughs' Local Plan documents to be found sound, they must demonstrate that they have sought to significantly boost the supply of housing. That said, since 2008 an average of 55,000 homes per annum have secured planning approval in London. In comparison, there were only 18,700 new build completions in London in 2014 and 16,590 in 2013.

Therefore, the challenge is how to turn these approvals into construction completions. Somewhat surprisingly, this year's Budget has not done more to facilitate completions, although Housing Zones may help and there are indications that many house builders will be significantly increasing their build rates in coming years.

We expect that the next few years will lead to increased densities, much more estate regeneration and better use of public land for housing. The debates will continue over the use of lower grade green belt land to help meet London's housing needs and whether there should be more state-led house building. It will also be important to ensure that high quality and sustainable homes are delivered, which can stand the test of time and not repeat of post-war failings that are now being corrected.

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