Aggressive housing policy paused in London until new limitations considered

On Tuesday, council passed an Iiterim control bylaw, a powerful planning tool that can pause development until new regulations or policies can be considered.

Fearing a rush of applications from developers looking to avoid a new set of rules for Additional Residential Units (ARUs), London city council has temporarily paused the approval of higher-density ARUs until new limits can be considered early next year.

On Tuesday, council passed an interim control bylaw, a powerful planning tool that can pause development until new regulations or policies can be considered.

“The city continues to receive applications for additional residential units that include higher bedroom counts and larger unit sizes than the policies currently contemplate within established neighbourhoods,” reads a motion from Coun. Steve Lehman, who chairs the Planning and Environment Committee. “This raises concerns related to neighbourhood compatibility.”

Also known as granny suites, ARUs are secondary housing units intended to gently increase density within existing neighbourhoods, and in most cases no longer require council approval.

In 2023, city council approved permitting up to four residential units, as a right, on single family residential properties — one primary dwelling unit, plus three ARUs.

That’s more aggressive than the provincial policy that permits up to three residential units as a right — one primary dwelling unit, plus two ARUs.

Council followed up in 2024 by removing the cap on bedrooms citywide, except in student-oriented near campus neighbourhoods.

Subsequently, some developers sought to maximize the new permissions, leading to concerns about over intensification.

In October, CTV News spoke with neighbours of 545-547 Elmdale Ave. where a developer has been approved to construct two buildings containing a total of 32 bedrooms on a site that previously contained a single family home.

“We realize that adjustments need to be made, [but] the original intent, I think we’re still behind that,” Lehman told colleagues.

The interim control bylaw will give civic administration time to undertake a land use study and avoid a surge of ARU applications before new limits are imposed.

It would only apply to large scale ARU applications that exceed the same limits outlined in a motion brought forward by Coun. Corrine Rahman and Deputy Mayor Shawn Lewis in October.

Their motion would set a limit of two bedrooms per ARU, and restrict their size to 80 per cent of the gross floor area of the main dwelling.

There would also be a three bedroom maximum within several combinations of ARUs and main dwelling units under the proposal.

More traditional small-scale ARUs will not be subject to the pause.

London has received accolades for its permissive approach to housing policies in recent years.

Mayor Josh Morgan doesn’t believe the interim control bylaw sends a contrary signal to local developers.

“I don’t think that sends a negative message at all,” the mayor tells CTV News. “We’re still a city that is in need of housing and building as much housing as possible. What we’ve seen, though, is the intended gentle densification that we want in the neighborhoods has gone to the extreme in some very rare cases.”