Mayor secures £100m to boost affordable homes supply in the capital
The Mayor of London, Boris Johnson, is urging affordable housing providers to step forward and claim a share of up to £100m in funding to boost the supply of much needed homes in the capital.
The new investment secured by the Mayor from the Government forms the latest part of his pledge to safeguard the capital’s competitiveness by improving the housing options of working Londoners, as well as boosting jobs in the construction industry.
The money, which is additional to the first £100m ‘Housing Covenant’ funding announced by the Mayor in September, will be targeted specifically towards housing providers who commit to starting construction on site by March 2015 at the latest.
Developers, local authorities, charities and private organisations are all invited to bid for funding, which will be used to deliver affordable homes to own. The Mayor also wants to hear from organisations committed to bringing empty properties or under-used commercial units back into use as affordable homes or to help London boroughs tackle homelessness. Organisations interested in submitting bids in London will need to do so by April 30.
The Mayor of London Boris Johnson, said: “This latest tranche of cash is another fantastic opportunity for housing providers in the capital to deliver the homes that this city desperately needs. Whether it’s for affordable homes to own, or to make better use of properties that lie empty or under-used, the fund will help working Londoners across the capital and create valuable jobs in construction.”
The Mayor, who has overseen the release of 100 hectares of Greater London Authority land since he assumed his new housing powers, announced last month that funding allocations for the first part of his Housing Covenant would deliver more than 3,000 homes and support around 6,000 construction jobs.
Notes to editors
- The funding prospectus for this round of funding can be accessed here: http://www.london.gov.uk/priorities/housing/affordable-housing/building-...
- Providers are invited to bid for affordable housing to rent or buy within reach of working Londoners or to provide supported housing for vulnerable Londoners. This will include: homes for sale, for rent and supported housing. Bids which enable Londoners to own their own home are particularly encouraged and can be delivered through the Mayor’s flexible product, new-build equity loans and discounted market sale.
- The Mayor has sought to broaden the housing offer in London, and assist working Londoners who are not priority for affordable rented housing and are finding housing costs increasingly expensive. In April 2011, he launched his First Steps programme to assist low and middle income households get a foot on the housing ladder. First Steps is the umbrella term for all intermediate housing in London, including shared ownership, equity loan and intermediate rental homes.
- Bidders who are Private Registered Providers are invited to bid for funding alongside the government’s Affordable Housing Guarantee, which reduces the risk for lenders by providing a government pledge to underwrite debt taken out on eligible housing projects. More information can be found on the Department for Communities and Local Government - https://www.gov.uk/government/publications/housing-guarantee-scheme-rules-affordable-housingPrivate Registered Providers can apply to combine the new money with the guarantee - a share of the up to £100 million funding can be used as a grant towards a project, while the guarantee allows them to borrow the remaining finance at below market lending rates - enabling them to deliver more affordable homes.