Labour-run Islington council speaks out to oppose Sadiq Khan’s housing quota cuts

Sir Sadiq Khan (Collected Photo)

A Labour-run North London council has echoed opposition to the Mayor slashing affordable housing targets in the capital, following a legal challenge launched by three local authorities in June.

Islington Council has stood against Sir Sadiq Khan’s controversial emergency housebuilding measures announced in October 2025 by saying it will lobby against the policy. However Islington says it rejects the recent “court threats” issued by Green and Aspire-led councils.

In London, developers have to allocate 35% of new developments for affordable housing if they want to fast-track planning permission under local rules. But the Government and City Hall proposed to reduce this to 20% until 31 December 2028, in a bid to boost housebuilding in the capital amid a slump in building starts.

Presenting a motion rejecting this policy at Islington Town Hall on Thursday (July 2), Cllr Hannah McHugh (Labour) said that the council “had to challenge the Government and the Mayor where we disagree” and reaffirmed the local authority’s commitment to a 50% affordable housing target in the borough for developers.

However, she distanced the council from the legal challenge against the emergency measures lodged by Hackney, Tower Hamlets and Lewisham councils the week prior. “Our job is to be serious, practical and focused on delivery. Not to turn every disagreement into a press release or a court threat,” Cllr McHugh said.

An original motion brought forward by the Green opposition group in Islington had urged councillors to welcome the judicial review, but the Labour group – which has a majority on the council – backed their own amended version, praising Mayor Khan’s record on housing while adding that the council would “monitor” the legal challenge.

Executive Member for Planning, Cllr James Potts, said: “The only thing that [the Greens’] motion would do is waste money on legal challenges that may not even be needed.”

To this, the Greens accused the Labour administration of lacking ambition and for “watering down” their motion. “All we’re left with is lobbying,” said Cllr Sheridan Kates.

Islington, which has a social housing waitlist topping 16,000 and some of the highest private rents in the capital, is now the second Labour-run council to come out against the emergency housebuilding measures. In January, Brent Council warned City Hall and the Government that the quota cuts risked making matters worse by reducing the number of affordable homes delivered.

Meanwhile, Lambeth, Southwark, Waltham Forest and Haringey councils – all controlled fully or partially by the Green Party – have declared their formal support for the High Court challenge.

Responding to Islington’s position, a spokesperson for the Mayor of London said the measures were an example of the “bold action” needed to stimulate housebuilding and tackle the housing crisis.

“There’s now a perfect storm facing housebuilding in London due to a combination of high interest rates, the rising cost of construction materials, the legacy of the pandemic, a shortage of skilled workers and the lasting impact of Brexit,” the spokesperson said.

“This is a measure to get shovels in the ground now. In terms of affordable housing numbers during this difficult period, 20% of something will be more than 35% of nothing.”