Homes for a World City (continued)

London housing solutions
The economic importance of London to the whole country means that the capital's housing problems are not just a parochial matter. If London begins to fail economically there will be serious implications for the national economy. London's economy requires an effective labour market, which includes people on low and moderate incomes as well as those on good and high incomes. The evidence in the Commission's report demonstrates that there is not just a housing justification for a major increase in the rate of provision of affordable homes but also an economic justification and a public service justification.

The Commission has put forward a range of solutions for meeting London's need for affordable housing. It advocates a portfolio approach, using both housing and planning policies and taking advantage of every feasible opportunity for increasing the provision of good quality affordable homes through different tenures. For the purposes of this summary the Commission has identified 18 key areas.

1. Affordability and initiatives for people on moderate incomes
The Commission's analysis leads to the conclusion that the definition of affordability must work both for people in traditional housing need who are homeless or have need points on borough housing registers and for people on moderate incomes who cannot afford market housing.

The popular perception is that key workers are nurses, teachers and police officers. However, the health, education, and police services also need porters, cleaners, classroom assistants, and administrators. It is easy to broaden out the definition to many other workers in the public services, including transport, local government, fire-fighters and ambulance staff. A further step is needed to include the retail, tourist and service industries, now vital to London's economy.

The Commission's longer term vision is that London should develop a new intermediate housing market to tackle these broad needs. However, in the shorter term, it is reasonable for public policy to focus on those public services which have been given highest priority both by the Government and by the public.

The Commission recommends that the SDS should define affordable housing as housing for people on low or moderate incomes who cannot afford to buy or rent general market housing. This may take the form of social rented housing but also includes other forms of housing which are either subsidised or discounted well below market prices, such as shared ownership and cost renting. Wherever practicable, affordable housing within new developments should include provision for both low and moderate income households.

The Commission welcomes the Government's intention to fund a new Starter Homes Initiative. To be appropriate to London's needs, the scheme should have a wider remit than that suggested by the Housing Green Paper. In particular, it should not be limited to low-cost home-ownership, but should include the option of sub-market rented homes for people on moderate incomes.

Freedom of information

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