Boris proposes £200 million 'London Housing Bank'
Published by Brian Church for 24dash.com in Housing and also in Local Government
London Mayor Boris Johnson is calling for the creation of a 'London Housing Bank' to loan up to £200 million. The money would go to development partners to help them speed up the building of around 3,000 homes on large scale 'multi-phase' schemes which already have planning consent.
These homes would then be let to Londoners at low cost rent, below the market rate, for a 10 year period before being sold on with the loan repaid to City Hall.
Johnson said: "We’re doing everything we can to double housebuilding across the capital and address a 30-year failure to build enough homes for this thriving city. The proposed London Housing Bank is just one of several highly innovate new schemes we are pioneering here at City Hall to help meet the needs of hardworking Londoners.
"Through this exciting new fund we hope to provide thousands of brand new homes many years sooner than would otherwise be possible, and make them available to rent at more affordable, below market, rates for hardworking Londoners.”
Under the mayor's updated Housing Strategy launched last week, the long-term ambition is to increase supply to at least 42,000 new homes a year, around double what has been achieved over the last 20 years.
City Hall says its research suggests that planning consents have been granted for around 200,000 homes in London which have not yet been built. It points out that around three quarters of these consents are on large, multi-stage regeneration developments of more than 500 homes which can take many years to complete.
Through the London Housing Bank, the mayor would help to fast track these developments. City Hall says this would see completion "several years earlier than traditional housebuilding methods allow and make thousands of additional new homes available for Londoners at low cost rent which would complement rather than compete with the other homes being brought to market on the sites".
The mayor is consulting agencies and organisations within the housing industry on the London Housing Bank proposals. The closing date for responses is 21 May.