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17/07/2017

Khan announces £1.7bn affordable homes deal

Words: Laura Edgar
Affordable homes / Shutterstock: 516642517

Mayor of London Sadiq Khan has announced a deal with councils and housing associations in the capital for an extra 50,000 affordable homes to be built over the next four years for rent and purchase.

The deal follows Khan’s first call for bids to the £3.15 billion affordable homes fund allocated in the 2016 Autumn Statement.

The 50,000 affordable homes is an increase from the 18,000 homes secured by the final call for bids issued by previous mayor Boris Johnson in 2014, according to the mayor’s office.

The £1.7 billion is for the delivery of 49,398 affordable homes across all 32 boroughs and the City of London. Forty-four housing providers, including large and small housing associations, as well as nine London councils, will deliver the homes.

In total, 17,500 dwellings will be let at social rent levels, while 32,000 will comprise the Mayor’s London Living Rent and shared ownership component.

Housing associations will have the option to swap homes between London Living Rent and shared ownership depending on the circumstances in each borough when the homes are completed.

Sites have been decided for almost half of the homes and delivery will start immediately. Major housing associations are to work with City Hall to bring forward land for the remaining homes.

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 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.”

The allocations also include eight new strategic partnerships with housing associations – L&Q, Hyde, Genesis, Clarion, Network, Notting Hill, Optivo, and Peabody. The housing associations have said they will build new homes at scale and deliver at least 60 per cent affordable housing across their portfolio of sites, delivering 38,500 genuinely affordable homes.

Paul Hackett, chair of the G15, representing London's largest housing associations, said: “The commitment from London's housing associations is an unprecedented level of ambition to build the homes the capital needs. The partnership with the mayor is the biggest that London's housing associations have ever committed to – reflecting the urgency of the housing crisis and our strong relationship with City Hall.”

All homes, said Khan, will meet the design and sustainability standards set out in the London Plan. The new plan will be published later this year.

Image credit | Shutterstock

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