The London Housing Bank provides loan funding to accelerate the development of up to 3,000 homes.
London Housing Bank
Development of the London Housing Bank
The London Housing Bank was first proposed in the Mayor’s 2020 Vision and developed as part of the Draft London Housing Strategy.
Following a consultation period, the Mayor launched the first phase of the London Housing Bank in September 2014 through a funding prospectus for £200m.
How the Housing Bank works
The low cost loans mean more homes can be developed at a faster rate, particularly on large multi-phased sites. These homes will be let as Intermediate Rent for an agreed length of time (a minimum of seven years).
At the end of this period the funding will be repaid (including annual interest). The provider will then have flexibility as to how they wish to use the homes.
Funding allocations for phase one
The first phase has seen a total of £53m allocated to accelerate the construction of 643 homes by an average of two years.
The following allocations were announced on 16 March 2015.
The First Steps Challenge Fund
The First Steps Challenge Fund, the second phase of the London Housing Bank, was launched on 30 January 2015. £180m is being provided to fund 3,000 shared ownership homes. These properties will be constructed by March 2020, 2,400 of which will be developed by March 2018.
Funding is available through continuous market engagement for additional shared ownership homes, or shared ownership homes which can be accelerated.
As with the first phase of the London Housing Bank, funding will be repaid by successful applicants.
Continuous bidding for both phases of the London Housing Bank is now open.
London Housing Bank Phase 1
Bids can be made through our Investment Management System (IMS). Prospective bidders who do not already have a GLA IMS user account should email [email protected] to request a registration pack. Providers are also required to submit a number of statements and supporting information to [email protected]. See paragraph 74 of the London Housing Bank Prospectus for more details.
London Housing Bank Phase 2 – First Steps Challenge Fund
Bidders are required to submit an Excel form and accompanying document. Please refer to paragraph 50 of the First Steps Challenge Fund Prospectus for more details. Bids should be submitted to [email protected].
You will receive an automated e-mail acknowledgement once you’ve submitted your bid. If you do not receive an e-mail acknowledgement your submission has not been received.
We’re happy to engage with interested organisations at an earlier stage or, if necessary, to take longer to work up high quality, achievable proposals. If you have any questions about this funding, or the bidding process, please submit them to [email protected].
Funding organisations were invited to submit expressions of interest for innovative ways of providing affordable housing through a revolving investment fund. Big Issue Invest are one of the organisations who successfully secured funding through the Revolving Fund, and will provide development finance for social sector organisations to provide up to 400 new supply affordable homes. The scheme will create jobs and skills for the most disadvantaged through loan finance of up to £10 million.
Any organisations who may be interested in similar future opportunities should send an email to [email protected]