Housebuilders pull out of London over Labour planning ‘nightmare’

Top housebuilders Taylor Wimpey and Berkeley Group are abandoning London due to an overwhelming planning "nightmare" that has rendered developments unprofitable. Berkeley's Aylesham Centre redevelopment, initially blocked by heritage objections, was recently rejected a second time by Southwark Council. The housebuilder claims the project would have created over 1,000 jobs and generated £13 million in annual spending.

Berkeley’s executive chair, Rob Perrins, argues that heritage objections are being used as a roadblock by planners and local authorities. Berkeley’s Motspur Park Gasworks development in Kingston has also been put on hold by the government despite receiving approval from London mayor Sadiq Khan. Berkeley is now writing to the housing ministry to question why this development has been blocked and when it will be allowed to proceed.

The company has not bought new land in London for over four years and has halved its on-site workforce in the city. Taylor Wimpey's chief executive, Jennie Daly, echoed Perrins' concerns, stating that the economic case for developing in London has "evaporated." She cited new requirements for high-rise blocks of flats, such as a second staircase for buildings over 18 meters, and the affordability challenges that have suppressed demand for new homes.

The government aims to build 1.5 million homes by 2029, but housing secretary Angela Rayner admitted that this goal is a "stretch target," with recent data indicating delivery is far behind this objective.