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Sub-market rent housing worth millions to London economy - research

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Sub-market rent housing worth millions to London economy - research

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Published by Jon Land for 24dash.com in Housing

Sub-market rent housing worth millions to London economy - research Sub-market rent housing worth millions to London economy - research

Plans by affordable housing providers to build thousands of sub-market homes in London will have a direct benefit of millions of pounds to the capital's economy, according to a new report.

The 'Housing Policy in High-Density Global Cities' by the University of Westminster, sets out a rigorous cost benefit analysis which shows that there is a net benefit to the London economy of more than £17,000 per annum for each affordable rental home provided.

The research was based around the Dolphin Square Foundation's plans to develop 1,000 sub-market rent homes for people who work in central London by 2020.

The report states that both social and economic diversity are threatened by the rising cost of living in London – and that present trends indicate a further move towards only the very rich and the very poor being able to access housing in London.

The study highlights that diversification has a positive impact on growth while the growing dominance of the finance and business sector may have a detrimental effect.

Researchers based their study on One Church Square in Pimlico, a development of 31 apartments for intermediate rental developed for Dolphin Square Foundation, with rents from £199 a week.

The main focus of the study was on the economic and social impacts that arise from the provision of this accommodation to individuals who would otherwise be priced out of Central London. The value of the earnings of its residents to the London economy was calculated.

The final figure for the economic and social value of a Dolphin Square Foundation development such as One Church Square is approximately £600,000 per annum. The intermediate rental properties at One Church Square have attracted the “creative class”, which will benefit economic activities and local communities.

In addition to the economic impacts of a development such as One Church Square, there are benefits for the community. Local ties are one of the eligibility criteria for tenants – to attract people who will be willing to get involved.

Jon Gooding, Chief Executive, Dolphin Square Foundation, said: “The findings illustrate the importance of accommodating the work of organisations such as Dolphin Square Foundation to maintain the economic and social diversity that is vital to the future of the capital as a living and working global city.

"This model shows that our current developments will each contribute an average of £1 million a year to London’s economy.”

Lord Best, who hosted the launch at the House of Lords and was involved in the formation of Dolphin Square Foundation, said: “More homes are desperately needed in central London. But the danger is that these are constructed with investment from overseas, built by Eastern European workers, and sold to buyers in Russia and the Far East, doing nothing for Londoners.

"Development by Dolphin Square Foundation is a very different story. Demand for affordable homes has never been greater and Dolphin Square Foundation is aiming to transform the delivery of intermediate housing the private rental sector.

"We have to ensure that local authorities, the GLA and the Government do all they can to help organisations such as Dolphin Square Foundation to deliver these homes for people who work in the engine room of London.”

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