London's Housing Rules Have Changed — Most People Haven't Noticed Yet
Homeowners in London, Ontario can now legally build up to four units on a single lot without a full rezoning. The City has approved buildings up to 45 storeys in the downtown core. These aren't future proposals — they're already in effect. If you own property in London or you're thinking about buying, here's what's actually changed and what it means for you.
What the City Already Changed
In 2024, London made two significant moves that reshaped how residential property works across the city.
First, the City amended The London Plan — its overarching policy document — to allow much taller and denser buildings in targeted areas. The new maximums: up to 45 storeys in the downtown core, 35 storeys near transit villages, 15 storeys along major urban corridors like Richmond, Western, and Dundas, and up to 4 storeys on neighbourhood connector streets.
Second, London overhauled its zoning bylaw to allow homeowners to create up to four units per property on most low-rise lots. The old five-bedroom cap was also removed city-wide, with limited exceptions near campuses.
The most practical change: many of these additional units — basement suites, garage conversions, backyard coach houses — are now permitted "as of right" on qualifying lots. That means no full zoning amendment, no lengthy approval process. You still need to meet building code and site conditions, but the path to adding a legal unit is significantly shorter than it used to be.
What's Happening on the Ground Right Now
A property at 89 Stanley Street is scheduled before London's Committee of Adjustment on June 25, 2026. The owner wants to convert an existing home into three units on a lot that falls short of standard minimums — 435 m² versus the 550 m² minimum, 10.8 metres of frontage versus 12, and a 2.8-metre driveway versus the 3-metre standard.
On paper, this lot doesn't check all the usual boxes. But the City is signalling a willingness to grant minor variances to support exactly this kind of small-lot intensification in established neighbourhoods. Applications like this are increasingly getting approved.
Larger projects are moving through the pipeline as well. A 2026 rezoning notice proposes four 14-storey apartment buildings — 868 units — at a density of 275 units per hectare. Zoning files are also active along corridors like Fanshawe Park Road East. The City isn't just talking about intensification — it's approving it, file by file.
What This Means If You Own a Home in London
If you're in an older, established neighbourhood, your lot may now have more potential than it did even two years ago. A legal basement suite, a converted garage, or a backyard unit are realistic options for a lot of properties that couldn't have pursued them as easily before.
In practical terms, that could mean rental income to offset your mortgage, a solution for aging parents or adult kids who need nearby housing, or simply more flexibility in how you use your property long-term.
It also affects how buyers and investors are going to value lots going forward. Properties that once looked too small or awkward to intensify — like the Stanley Street example — now carry more potential. If your lot can support additional units, that will increasingly factor into what it's worth.
What This Means If You're Buying
If you're purchasing in London right now, it's worth asking about zoning flexibility in any neighbourhood you're considering — not because you necessarily plan to build anything, but because that optionality has real and growing value.
It's also worth knowing the limits. More density on existing streets means more cars, more noise, and changing neighbourhood character. The City is also tightening some rules: a late-2025 proposal would cap additional units at two bedrooms each and limit total bedrooms across a main unit and any additional residential units (ARUs). Flexibility, in other words, has guardrails.
The Bottom Line
London is in the middle of a significant shift in how it grows. The rules are already changing the math on what existing properties can do, what's being built along major corridors, and what buyers and investors are going to prioritize. This isn't something coming in five years — it's happening now.
If you want to talk through what any of this means for your specific property or your buying plans, reach out directly.
Shane Harrison — The Realty Firm Inc., London Ontario
www.shaneharrison.ca | 519-870-8104
