London Mayor strikes deal for 50,000 new affordable homes

Mayor of London Sadiq Khan has announced a ground-breaking deal with councils and housing associations to start building an extra 50,000 affordable homes to rent and buy over the next four years.

Housing associations and councils made the commitment in response to the Mayor’s first call for bids to the £3.15bn affordable homes fund he secured from the government in November last year.

It represents almost treble the 18,000 homes secured by the final call for bids issued by the previous Mayor in 2014. The deal will see an estimated £1.7bn invested in 49,398 affordable homes being built, with new homes in all 32 boroughs and the City of London.

They will be delivered by 44 housing providers – including large and small housing associations, as well as nine London councils.

Matching ambitions

Announcing the scheme Khan said: “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.

“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.”

Of the total 50,000, 17,500 will be for rents around social levels, and just under 32,000 will be for a combination of the Mayor’s new London Living Rent and Shared Ownership.

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 with the major housing associations committing themselves to working with City Hall to bring forward land for the remaining homes allocated.

Strategic partnerships

The allocations also include eight new strategic partnerships with housing associations. The partnerships – with L&Q, Hyde, Genesis, Clarion, Network, Notting Hill, Optivo, and Peabody – have been struck between the Mayor and housing associations that are prepared to build new homes at scale and will deliver at least 60 per cent affordable housing across their portfolio of sites. These partnerships will deliver 38,500 genuinely affordable homes.

Paul Hackett, chair of the G15 which represents 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 London’s housing associations have ever committed to, reflecting the urgency of the housing crisis and our strong relationship with City Hall.”

City Hall has allocations for about 30,000 homes in place from bids made prior to the current round, and there remains a further £446m available for when bidding re-opens later this year. Together with those homes announced today, these allocations will all contribute to the Mayor’s ambitious target of starting 90,000 new affordable homes by 2021.

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