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Khan puts up £200m to protect affordable housing from Brexit

Words: Laura Edgar
Sadiq Khan / Steve Punter

Mayor of London Sadiq Khan has committed an extra £200 million to affordable housing to protect the sector from the uncertainty caused by Brexit.

The continuing Brexit negotiations are affecting the housing market, Khan explained, with sales falling and uncertainty surrounding house prices.

He said this is having a knock-on effect on housing associations, which are receiving low levels of funding and rely on income from selling new market-price homes to help to subsidise new affordable homes.

The money is intended to assist housing associations in switching homes from market sale or shared ownership to homes for rent at social or intermediate rent levels lower than market rent.

Khan believes the extra cash will enable housing associations to commit to their future plans, sign construction contracts, and begin development without further delay, although it “will stretch” City Hall’s affordable homes funding to its limit. He has called on the government to at least match his funding commitment.

Khan said: “At City Hall we are building record numbers of new social rented and other genuinely affordable homes. We must not let the government’s chaotic mishandling of Brexit undermine our plans. That’s why it is right that we push our funding to its very limits to keep housing associations building more affordable housing through the ongoing uncertainty – and it’s even more important given the government totally failed to address my concerns when I recently raised them. Whatever happens with Brexit, ministers must at the very least match my support, and ensure we can keep building the homes Londoners need over the coming years.”

The support received by individual housing associations will depend on the schemes in their pipeline and those under way. It is only available for homes starting in this calendar year.

Image credit | Steve Punter