LONDON is to get an extra 50,000 affordable homes to rent and buy over the next four years in a deal announced by the Mayor of London as part of a record breaking £3.15 billion housing fund.
The £1.7 billion deal with councils and housing association will result in new homes being built across the city in all 32 boroughs delivered by 44 housing providers including nine local authorities and large and small affordable housing associations.
London Mayor Sadiq Khan described it as a ground breaking deal that has the firm backing of the housing industry with 17,500 homes for rent and just under 32,000 for a combination of the Mayor’s new London Living Rent and Shared Ownership schemes.
London Living Rent is a new type of tenancy Khan introduced last year to help middle income earners in the capital save for a deposit to move into shared ownership by offering them rents based on one third of average local gross household incomes.
Housing associations are being given the flexibility to swap homes between London Living Rent and Shared Ownership depending on local circumstances when homes are completed.
Sites have already been identified and bought for almost half the 50,000 homes, meaning delivery can get underway immediately, with the major housing associations committing themselves to working with City Hall to bring forward land for the remaining homes allocated.
‘I want to see everyone playing their part in tackling the housing crisis in London, because it is simply unacceptable that Londoners continue to be priced out of a city they call home,’ said Khan.
‘We know that solving the housing crisis is not going to happen overnight, but I very much welcome so many housing associations and councils matching my ambition by committing to build the new and genuinely affordable homes Londoners so desperately need,’ he explained.
‘I am delighted that we have set a City Hall record for the number of homes allocated funding but I am clear that we have got much more to do to secure the land we need to build homes and ensure we have sufficient capacity in the construction industry,’ he added.
Paul Hackett, chair of the G15, representing London’s largest housing associations, pointed out that the commitment from London’s housing associations is an unprecedented level of ambition to build new homes.