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The must be some sort of standards in place to make sure minimum living areas, daylight, outdoor space, etc, will be there when they go to market. And personally they're no big deal anyway. Just incorporate them on your design from start!

In a highly pressured area, like London, where cost is high, it's unlikely architects will be able to mediate what they feel it's an apropriatte space (that is area, volume, light, ...) with the developers interest (profit). And with such a shortage of housing stock, people will have to accept what's available, even if inadequate.

Sure, there's the risk of beaurocracy, but we can't allow building subpar living spaces. Cost cutting will have to come from somewhere else.