New Build and Development Guide for London: Planning, Design, and Costs

LONDON IS GOVERNED BY TWO LEVELS OF PLANNING POLICY: (1) THE LONDON PLAN (PUBLISHED BY THE MAYOR OF LONDON, ADOPTED 2021) — THE STRATEGIC SPATIAL DEVELOPMENT STRATEGY FOR GREATER LONDON. KEY POLICIES RELEVANT TO NEW RESIDENTIAL DEVELOPMENT: POLICY H1 (INCREASING HOUSING SUPPLY) — SETS MINIMUM HOUSING TARGETS FOR EACH LONDON BOROUGH (E.G. WANDSWORTH: 1,602 DWELLINGS/YEAR; HACKNEY: 1,022/YEAR). POLICY D6 (HOUSING QUALITY AND STANDARDS) — REQUIRES NEW HOMES TO MEET THE NATIONAL DESCRIBED SPACE STANDARDS (MINIMUM 50M2 FOR A 1-BED, 1-PERSON FLAT; 58M2 FOR A 1-BED, 2-PERSON; 70M2 FOR A 2-BED; 93M2 FOR A 3-BED). POLICY D5 (ACCESSIBLE DESIGN) — REQUIRES 10% OF NEW HOMES TO MEET M4(3) WHEELCHAIR ACCESSIBLE STANDARD (BUILDING REGULATIONS APPROVED DOCUMENT M); 90% TO MEET M4(2) ACCESSIBLE AND ADAPTABLE DWELLING STANDARD. POLICY SI 2 (MINIMISING GREENHOUSE GAS EMISSIONS) — LONDON PLAN'S "ZERO CARBON" TARGET: ALL NEW MAJOR RESIDENTIAL DEVELOPMENT (10+ DWELLINGS) MUST BE NET ZERO CARBON. A 35% REDUCTION IN CO2 EMISSIONS BEYOND PART L OF THE BUILDING REGULATIONS IS REQUIRED THROUGH ENERGY EFFICIENCY AND ON-SITE RENEWABLE ENERGY. (2) LOCAL DEVELOPMENT PLAN (LDP) OF EACH LONDON BOROUGH — EACH BOROUGH ALSO HAS ITS OWN LOCAL PLAN (E.G. ISLINGTON LOCAL PLAN 2019-2034; WANDSWORTH LOCAL PLAN 2023) WHICH SETS OUT POLICIES SPECIFIC TO THAT BOROUGH. LOCAL POLICIES COVER: DESIGN QUALITY EXPECTATIONS (MATERIALS, HEIGHT, MASSING, RELATIONSHIP TO STREET SCENE); AFFORDABLE HOUSING THRESHOLDS (TYPICALLY: 10+ DWELLINGS TRIGGERS AFFORDABLE HOUSING REQUIREMENT — USUALLY 35-50% AFFORDABLE BY HABITABLE ROOM IN MANY LONDON BOROUGHS); FLOOD RISK ZONES; NATURE DEPLETION ZONES; AND CONSERVATION AREA-SPECIFIC POLICIES.

NEW RESIDENTIAL DEVELOPMENT IN LONDON REQUIRES ONE OF THE FOLLOWING PLANNING APPROVALS: (1) FULL PLANNING APPLICATION (HOUSEHOLDER OR FULL/MAJOR): THE STANDARD ROUTE FOR NEW RESIDENTIAL DEVELOPMENT. REQUIRES: COMPLETED APPLICATION (PLANNING PORTAL ONLINE, FEE £578 PER DWELLING IN 2025 FOR MOST MINOR RESIDENTIAL DEVELOPMENT — INCREASED FROM £462 APRIL 2024); REQUIRED SUPPORTING DOCUMENTS: DESIGN AND ACCESS STATEMENT (DESIGN PRINCIPLES, ACCESS STRATEGY, MATERIAL SELECTION), SITE LOCATION PLAN (ORDINANCE SURVEY BASE), BLOCK PLAN (SHOWING NEW DEVELOPMENT IN SITE CONTEXT), FLOOR PLANS AND ELEVATIONS (DETAILED ARCHITECTURAL DRAWINGS, TYPICALLY 1:100 SCALE FOR PLANNING), ARBORICULTURAL IMPACT ASSESSMENT (IF ANY TREES WITHIN 15M OF DEVELOPMENT — ESPECIALLY RELEVANT IN LONDON WHERE TPOS ARE WIDESPREAD); SUSTAINABLE DRAINAGE STRATEGY (SuDS — MANDATORY IN LONDON FROM 2025 FOR ANY DEVELOPMENT CREATING OVER 100M2 OF IMPERMEABLE SURFACE); ENVIRONMENTAL IMPACT ASSESSMENT (EIA — REQUIRED FOR MAJOR DEVELOPMENT — TYPICALLY OVER 10 DWELLINGS). DETERMINATION PERIOD: MINOR APPLICATIONS (UNDER 10 DWELLINGS) — 8 WEEKS TARGET. MAJOR APPLICATIONS (10+ DWELLINGS) — 13 WEEKS TARGET. IN PRACTICE, LONDON BOROUGHS FREQUENTLY EXCEED THESE TARGETS AND DETERMINATION TIMES OF 16-26 WEEKS ARE COMMON FOR CONTESTED APPLICATIONS. (2) PRIOR APPROVAL (PERMITTED DEVELOPMENT HOUSE-TO-FLAT CONVERSION): UNDER GPDO 2015 CLASS MA (AND FORMERLY CLASS O), CERTAIN CHANGES OF USE DO NOT REQUIRE FULL PLANNING PERMISSION BUT REQUIRE PRIOR APPROVAL FROM THE LPA. (3) OUTLINE PLANNING PERMISSION: FOR LARGER SITES WHERE FULL DETAIL IS NOT YET DETERMINED — PERMISSION FOR THE PRINCIPLE OF DEVELOPMENT WITH DETAILS RESERVED FOR LATER APPROVAL.

THE COMMUNITY INFRASTRUCTURE LEVY (CIL) IS A CHARGE LEVIED BY LONDON BOROUGHS ON NEW RESIDENTIAL DEVELOPMENT TO FUND INFRASTRUCTURE. CIL IS PAYABLE ON ALL NEW RESIDENTIAL FLOOR SPACE CREATED (GROSS INTERNAL AREA — GIA) AND IS CALCULATED PER M2. LONDON CIL STRUCTURE: TWO LEVELS OF CIL IN LONDON: (1) MAYORAL CIL (MCIL2 — SECOND STAGE, EFFECTIVE FROM SEPTEMBER 2019): £60/M2 GIA FOR ALL NEW RESIDENTIAL DEVELOPMENT IN GREATER LONDON. THIS FUNDS TRANSPORT INFRASTRUCTURE (CROSSRAIL 1 — ELIZABETH LINE — AND FUTURE TRANSPORT INVESTMENTS). (2) BOROUGH CIL: EACH LONDON BOROUGH SETS ITS OWN BOROUGH CIL RATE WHICH IS ADDITIONAL TO THE MAYORAL CIL. BOROUGH CIL RATES VARY ENORMOUSLY ACROSS LONDON — FROM £0/M2 (SOME OUTER LONDON BOROUGHS WITH LOW VIABILITY) TO OVER £600/M2 (PRIME CENTRAL LONDON — KENSINGTON AND CHELSEA, CITY OF WESTMINSTER). EXAMPLE CIL CALCULATION: NEW 3-BED HOUSE IN HACKNEY (GIA: 93M2): MAYORAL CIL: 93M2 X £60 = £5,580. HACKNEY BOROUGH CIL: 93M2 X £115 (HACKNEY'S RESIDENTIAL RATE ZONE C — £115/M2): £10,695. TOTAL CIL: £16,275. IMPORTANT EXEMPTIONS: SELF-BUILD EXEMPTION — A HOMEOWNER BUILDING THEIR OWN SELF-OCCUPIED HOME (NOT A SPECULATIVE DEVELOPMENT) IS EXEMPT FROM CIL IF THEY SUBMIT A SELF-BUILD EXEMPTION CLAIM FORM BEFORE COMMENCING DEVELOPMENT. AFFORDABLE HOUSING — UNITS PROVIDED AS AFFORDABLE HOUSING (SOCIAL RENT, AFFORDABLE RENT) ARE EXEMPT FROM CIL. ANNEX EXEMPTION — A RESIDENTIAL ANNEX BUILT FOR A FAMILY MEMBER OCCUPIED BY THAT FAMILY MEMBER IS EXEMPT FROM CIL.

NEW BUILD RESIDENTIAL PROPERTIES IN ENGLAND MUST COMPLY WITH THE FULL SET OF BUILDING REGULATIONS — THE KEY PARTS FOR A NEW LONDON HOME IN 2025: PART A (STRUCTURE): NEW BUILDINGS REQUIRE FULL STRUCTURAL DESIGN (FOUNDATION DESIGN INCLUDING LONDON CLAY INVESTIGATION, STRUCTURAL FRAME DESIGN, FLOOR AND ROOF STRUCTURE). PART B (FIRE SAFETY): NEW DWELLINGS ABOVE 2 STOREYS HAVE ADDITIONAL FIRE SAFETY REQUIREMENTS. DWELLINGS ABOVE 18M IN HEIGHT (RELEVANT IN LONDON FOR RESIDENTIAL DEVELOPMENTS OF 6+ STOREYS) ARE SUBJECT TO THE BUILDING SAFETY ACT 2022 (HIGHER RISK BUILDINGS REGIME — GATEWAY PROCESS WITH THE BUILDING SAFETY REGULATOR). PART E (ACOUSTIC): NEW DWELLINGS MUST ACHIEVE MINIMUM AIRBORNE SOUND INSULATION OF DW,45DB BETWEEN PARTY WALLS AND FLANKING PATHS; AND IMPACT SOUND INSULATION OF LW,62DB ON PARTY FLOORS. PART L (ENERGY EFFICIENCY — NEW DWELLINGS): THE 2021 BUILDING REGULATIONS (EFFECTIVE JUNE 2022) REQUIRE A 31% REDUCTION IN ENERGY USE (NOTIONAL TARGET EMISSION RATE — TER) VERSUS THE 2013 PART L BASELINE. SAP CALCULATION: EVERY NEW DWELLING MUST HAVE A SAP (STANDARD ASSESSMENT PROCEDURE — SAP10.2 AS OF 2022) CALCULATION PREPARED BY A SAP ASSESSOR CONFIRMING COMPLIANCE WITH PART L. KEY REQUIREMENTS FOR LONDON NEW BUILD IN 2025: U-VALUES: EXTERNAL WALL ≤0.18 W/M2K; FLOOR ≤0.13 W/M2K; ROOF ≤0.11 W/M2K; WINDOWS ≤1.4 W/M2K; DOORS ≤1.4 W/M2K. AIR PERMEABILITY: ≤5.0 M3/(H.M2) AT 50 PA (TESTED BY PRESSURE TEST POST-CONSTRUCTION). LONDON PLAN ZERO CARBON: FOR MAJOR DEVELOPMENT IN LONDON (10+ DWELLINGS), A 35% CO2 REDUCTION BEYOND PART L PLUS FULL OFFSET OF REMAINING REGULATED CO2 EMISSIONS IS REQUIRED (THROUGH ON-SITE RENEWABLES OR PAYMENT INTO THE BOROUGH'S CARBON OFFSET FUND — TYPICALLY £60/TONNE CO2).

SELF-BUILD (WHERE THE HOMEOWNER ACTS AS DEVELOPER AND MANAGES THE BUILD PROCESS FOR THEIR OWN OCCUPATION) AND CUSTOM BUILD (WHERE A DEVELOPER PROVIDES A SERVICED PLOT AND THE BUYER CUSTOMISES THE DWELLING) ARE GROWING CATEGORIES IN LONDON. THE SELF-BUILD AND CUSTOM HOUSEBUILDING ACT 2015 AND HOUSING AND PLANNING ACT 2016 REQUIRE LONDON BOROUGHS TO MAINTAIN A REGISTER OF PEOPLE SEEKING SELF-BUILD PLOTS AND TO PERMISSION SUFFICIENT PLOTS TO MEET THAT DEMAND. IN PRACTICE, SELF-BUILD IN LONDON IS CHALLENGING DUE TO: HIGH LAND COST (SERVICED PLOTS IN LONDON: £200,000-£1,000,000+ DEPENDING ON LOCATION AND PLOT SIZE); PLANNING COMPLEXITY (EVEN A SINGLE HOUSE ON AN INFILL PLOT MAY REQUIRE A COMPLEX PLANNING APPLICATION IN LONDON'S DESIGN-AWARE BOROUGHS); AND HIGH BUILD COSTS (SEE BELOW). SELF-BUILD FINANCIAL BENEFITS: VAT RECLAIM — SELF-BUILDERS CAN RECLAIM THE VAT ON BUILDING MATERIALS AND SERVICES (5% NEW BUILD RATE SINCE FINANCE ACT 2012 — RECLAIM THROUGH HMRC DIY HOUSEBUILDERS SCHEME VAT431B FORM). STAMP DUTY LAND TAX (SDLT) — SDLT ON A SELF-BUILD PLOT IS PAID ON THE LAND VALUE ONLY (NOT THE FUTURE COMPLETED PROPERTY VALUE). CIL SELF-BUILD EXEMPTION (SEE ABOVE). TYPICAL LONDON NEW BUILD COSTS (2025, SHELL-ONLY, EXCLUDING LAND AND PROFESSIONAL FEES): BASIC NEW BUILD QUALITY (STANDARD SPECIFICATION, BLOCK AND BEAM, RENDER EXTERNAL): £2,000-£2,800/M2 GIA. MEDIUM SPECIFICATION (GOOD QUALITY FINISHES, ENERGY-EFFICIENT, DOUBLE GLAZING, KITCHENS AND BATHROOMS INCLUDED): £2,800-£3,800/M2 GIA. HIGH SPECIFICATION (LONDON YELLOW STOCK BRICK EXTERNAL, BESPOKE KITCHEN, PREMIUM BATHROOMS, FULL SMART HOME INTEGRATION): £4,000-£6,000+/M2 GIA.

A NEW RESIDENTIAL DEVELOPMENT IN LONDON REQUIRES A LARGER PROFESSIONAL TEAM THAN A STANDARD RENOVATION: (1) ARCHITECT — RIBA REGISTERED ARCHITECT FOR PLANNING DRAWINGS, DESIGN AND ACCESS STATEMENT, AND BUILDING REGULATIONS DRAWINGS. IN LONDON, USE AN ARCHITECT WITH LOCAL BOROUGH EXPERIENCE (PLANNING OFFICERS'S EXPECTATIONS VARY SIGNIFICANTLY BETWEEN BOROUGHS — A CAMDEN ARCHITECT KNOWS CAMDEN'S DESIGN QUALITY THRESHOLDS BETTER THAN A GENERAL PRACTICE). ARCHITECTURAL FEES FOR A SINGLE NEW HOUSE IN LONDON: PLANNING STAGE (CONCEPT THROUGH TO PLANNING SUBMISSION): £8,000-£25,000 DEPENDING ON COMPLEXITY. BUILDING REGULATIONS (TECHNICAL DRAWINGS, SPECIFICATIONS, BUILDING CONTROL SUBMISSIONS): £5,000-£15,000. CONTRACT ADMINISTRATION (MANAGING THE BUILD CONTRACT): 4-8% OF BUILD CONTRACT VALUE. (2) STRUCTURAL ENGINEER — REQUIRED FOR FOUNDATION DESIGN, STRUCTURAL FRAME, FLOOR STRUCTURES, AND TEMPORARY WORKS DESIGN. FEE: £3,000-£10,000 FOR A SINGLE HOUSE. (3) SAP/ENERGY ASSESSOR — REQUIRED FOR PART L SAP CALCULATIONS (PRE-CONSTRUCTION AND AS-BUILT). FEE: £500-£1,500. (4) PLANNING CONSULTANT — FOR COMPLEX SITES, PRE-APPLICATION ADVICE, OR CONTESTED APPLICATIONS, A PLANNING CONSULTANT IS VALUABLE. FEE: £2,000-£8,000 FOR A SINGLE DWELLING APPLICATION. (5) PRINCIPAL CONTRACTOR — A CDM 2015-COMPLIANT PRINCIPAL CONTRACTOR TO MANAGE THE BUILD PROGRAMME. FOR A NEW HOUSE BUILD IN LONDON, A DESIGN-AND-BUILD CONTRACT (JCIT BUILDING CONTRACT OR JCT D&B 2016) OR A TRADITIONAL JCT MINOR WORKS CONTRACT 2016 IS APPROPRIATE. CDM 2015 NOTIFICATION TO THE HSE IS REQUIRED IF THE BUILD PROGRAMME EXCEEDS 30 WORKING DAYS OR 500 PERSON-DAYS.