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London mayor announces 50,000 more affordable homes for capital

St Paul's Cathedral, Monument and construction cranes in London

London mayor Sadiq Khan has announced a deal to build 50,000 new more affordable homes for sale and rent in the city. These homes are in addition to the 90,000 houses Mr Khan has pledged to build in the capital by 2020-21.

Involving all 32 boroughs and the City of London, the £1.7billion plan will bring local authorities and housing associations together with private developers to build 50,000 homes for shared ownership and the Mayor’s living rent over the next four years, the latter aimed squarely at middle-income earners who want to progress from rented accommodation to shared ownership.

The living rent scheme means rent is charged as a third of average local incomes, allowing those who cannot afford to buy in London the opportunity to save for a deposit while paying an affordable monthly rent.

Work is expected to start quickly on the first homes to be built under the scheme with sites bought in Newham, Lambeth, Southwark, Barnet and Ealing. Funding will come from the £3.15bn pledged by the government to London’s housing last year.

Committed to building more affordable homes

Announcing the project, Mr Khan said: “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.

“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.”

And Paul Hackett, chair of the G15, which represents London’s largest housing associations, added: “The partnership with the Mayor is the biggest London’s housing associations have ever committed to, reflecting the urgency of the housing crisis and our strong relationship with City Hall.”

Thinktank backs National Housing Fund

Meanwhile, an independent thinktank has proposed establishing a National Housing Fund to deal with increasing the housing supply across the UK. ResPublica’s proposal has cross-party support and aims to encourage the government to use historically low interest rates to set up the fund with housing associations across the UK.

Its report – A National Housing Fund to Build Homes We Need – suggests such a fund could ensure up to 40,000 homes are built every year while boosting public finances by £3.4bn and creating 180,000 new jobs in construction.

The report’s author, Philip Callan, said: “Our report focuses on the practical steps that government can take to deliver many more homes. All of our proposed actions are in their control. What is needed now is the political will and leadership to make it happen.”

About the Author Frances Traynor

Fran is the content writer for Capital Conveyancing, producing articles on all aspects of the conveyancing process and around the UK property market in general. If there is a topic you'd like to see covered on these pages, please drop Fran a line on [email protected]

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