Mayor strikes deal for 50,000 new affordable homes

13 July 2017
  • Record £1.7bn deal between City Hall and London’s councils and housing associations
  • Successful first round of deals for Sadiq, up from 18,000 in the previous Mayor’s final round
  • New homes in every borough, with firm backing from housing industry

Sadiq Khan has today announced a ground-breaking deal with councils and housing associations in London 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 record-breaking £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.

Today’s announcement will see an estimated £1.7bn invested in 49,398 genuinely 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.

Of the total, 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. London Living Rent is a new type of tenancy Sadiq introduced last year to help middle-income earners in the capital save for a deposit to move into shared ownership by offering them rents based on one-third of average local gross household incomes.

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 – meaning delivery can get underway immediately – with the major housing associations committing themselves to working with City Hall to bring forward land for the remaining homes allocated.

The Mayor of London, Sadiq 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.”

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 – representing 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.”

Sir Steve Bullock, London Councils’ Executive member for housing said: “Councils are doing their utmost to tackle the housing crisis which, without action, will result in those providing vital services in our communities being forced to move out of the city.  This package will provide much-needed additional support to help boroughs and housing associations realise their ambitions of providing high quality, affordable new homes."

Graeme Brown, interim chief executive at Shelter, said: ‘Millions of families across the country are suffering at the hands of our housing crisis, but the situation is absolutely critical in the capital.

“At Shelter we see the impact of our chronic shortage of affordable homes every day, with increasing numbers of people left struggling to cope as they fork out most of their hard-earned wages on expensive private rents, while waving goodbye to the chance of saving for a stable home of their own.

‘But it doesn’t have to be this way, which is why we welcome these plans from the Mayor and look forward to working with him to make sure these homes are genuinely affordable for Londoners to buy or rent in the long-term.”

Jasmine Whitbread, chief executive of London First, said: “With the average monthly rent now at £1700, businesses are increasingly worried about their employees being priced out of the capital. As the Mayor gets to grip with the reality of housebuilding, it’s great to see him making good on the promise of tens of thousands of affordable new homes. But London’s housing shortfall hasn’t been addressed for years - to catch up to the volumes we need the Mayor has to keep up a drumbeat of housebuilding across the capital, otherwise we risk losing the people we need to stay competitive.”

All homes will be built to the highest standards and expected to meet the design and sustainability standards set out in the London Plan. Like all new buildings in London, they must meet stringent safety standards set by government. Measures include means of warning and escape, sprinklers, fire detection and fire alarm systems. The Mayor will be setting out what more he can do in terms of fire safety when he publishes his new London Plan later this year.

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.

  • Ends –

Notes to editors

 

2016-21 Affordable Housing Allocations – By Housing Provider

 

   

 

Total

49,398

£1,723,523,456

Organisation Name

Homes

GLA Funding Allocation

A2Dominion Homes

1,870

£80,776,000

Almshouse Consortium Ltd

86

£5,160,000

Brick by Brick (Croydon Council)

199

£5,572,000

Catalyst Housing Limited

1,216

£41,024,000

City of London

244

£14,640,000

Clarion Housing Group

5,000

£168,300,000

Estuary Housing Association Limited

76

£2,072,000

Evolve Housing + Support

49

£2,940,000

Genesis Housing Association Limited

2,049

£70,712,000

Grainger Trust Ltd

34

£0

Hexagon Housing Association Limited

223

£8,548,000

Home Group Limited

45

£1,164,426

Hyde Housing Association Limited

3,000

£102,000,000

Islington and Shoreditch Housing Association Ltd

124

£6,374,200

Lambeth & Southwark Housing Association Limited

4

£240,000

London & Quadrant Housing

11,610

£394,740,000

London Borough of Enfield

148

£5,345,000

London Borough of Harrow

317

£12,620,000

London Borough of Havering Council

610

£30,296,000

London Borough of Hounslow

174

£9,004,000

London Borough of Lambeth

912

£54,720,000

London Borough of Wandsworth

71

£3,972,000

Look Ahead Care and Support Ltd

38

£2,400,000

Metropolitan Housing Trust Limited

704

£18,376,000

Moat Homes Limited

50

£0

Network Housing Group Limited

1,752

£45,756,000

Newlon Housing Trust

200

£5,600,000

Notting Hill Housing Trust

5,321

£176,386,962

Octavia Housing

833

£31,435,500

One Housing Group Limited

686

£10,184,000

Optivo

2,600

£88,400,000

Orbit Group Limited

347

£14,676,000

Paradigm Housing Group Limited

134

£4,008,000

Paragon Community Housing Group Limited

288

£1,265,600

Peabody Trust

6,000

£220,973,768

Poplar HARCA Limited

144

£6,016,000

Richmond Housing Partnership Limited

475

£17,748,000

Sanctuary Affordable Housing Limited

11

£308,000

Southern Housing Group Limited

601

£20,338,000

Southwark Council

201

£12,060,000

Swan Housing Association Limited

127

£5,092,000

Thames Valley Housing Association Limited

418

£8,808,000

Wandle Housing Association Limited

307

£7,472,000

YMCA Thames Gateway

100

£6,000,000

           

 

 

2016-21 Affordable Housing Allocations – By Borough

 

Total

49,398

£1,723,523,456

London Borough

Homes

GLA Funding Allocation

To be confirmed

27,085

£981,326,162

Barking and Dagenham

53

£2,444,000

Barnet

1,585

£45,584,000

Bexley

377

£15,708,000

Brent

813

£23,768,000

Bromley

317

£6,804,000

Camden

335

£7,360,000

City of London

13

£780,000

Croydon

1,060

£36,180,000

Ealing

1,823

£75,900,000

Enfield

662

£16,249,000

Greenwich

926

£15,652,800

Hackney

72

£2,464,000

Hammersmith and Fulham

358

£16,848,000

Haringey

528

£12,901,000

Harrow

882

£39,520,000

Havering

752

£36,296,000

Hillingdon

474

£14,911,926

Hounslow

931

£36,160,000

Islington

648

£17,824,000

Kensington and Chelsea

140

£3,568,000

Kingston upon Thames

97

£0

Lambeth

1,448

£74,640,000

Lewisham

648

£23,032,577

Merton

525

£24,396,000

Newham

1,911

£40,272,000

Redbridge

305

£8,194,000

Richmond upon Thames

364

£16,028,000

Southwark

1,314

£48,279,885

Sutton

162

£1,944,000

Tower Hamlets

1,205

£40,548,073

Waltham Forest

526

£16,028,147

Wandsworth

954

£21,911,886

Westminster

105

£0