4 units on a single residential lot: What could that look like in London?

London's neighoburhoods could start taking on a very different look in the years to come with plans to allow up to four dwelling units on a single lot, a requirement for tapping into an accelerator fund for new housing. 

With the Forest City facing a housing crunch, London on Wednesday became the first city in Canada to be pledged money from a federal housing fund created back in 2021 to spur housing construction. London's share from the $4 billion fund will be $74 million, an amount expected to build about 2,000 new homes. 

The money came in part because in August city council moved to allow up to four dwelling units on a single property (up from three). The change was suggested in a letter to council by federal Housing Minister Sean Fraser.

Mike Wallce is the director of the London Home Builder's Institute, which represents the city's developers.   

He said there are a lot of questions about exactly how the money will be allocated. 

What is clear is that a London residential lot — whether it's existing or a new build — can now be home to more people as the city looks to boost housing supply. 

Wallace said it will change the kind of properties many developers will build. 

"Maybe the basement has a separate entrance, and a rough-in for a bathroom so a new home owner can get into the marketplace and still have a unit in the basement that they're able to supplement they're revenue and help pay the mortgage," he said. 

Of the four allowable dwelling units, one can be separate from the main building.

Jared Zaifman is the executive director of the London Home Builder's Association, a group that represents not only builders, but also contractors and suppliers. 

Zaifman said London contractors now regularly field calls from homeowners in older neighbourhoods looking into the logistics of adding so-called laneway homes or coach houses to their properties. 

"Realistically this is responding to the needs of our community," said Zaifman. "We just don't have enough housing supply right now." 

And while the trend helps with London's housing crunch, it does have the potential to create conflict at city hall.

As a former city councillor, Zaifman has seen first-hand the kind of pushback that can happen when infill developments are proposed in established neighourhoods. While London's population is expected to reach 650,000 by 2051, that will mean changes to older neighbourhoods.