industry news 5
Mayor to deliver 90,000 affordable homes to capital
S
adiq Khan has set out new planning rules to speed up the building of affordable housing, alongside plans for a
£3.15bn investment to support 90,000 new affordable homes in the capital. The Mayor’s new funding programme
details how he will use the investment, thought to be the biggest housing deal ever secured by City Hall, to support new affordable housing in the capital over the next five years. The new rules are designed to speed up
development and boost affordable housing numbers. Khan’s Supplementary Planning Guidance (SPG) is the first step to raising affordable housing levels from the low standard of 13 per cent. Khan commented on his recent
announcements: “I have been clear that fixing the housing crisis will be a marathon and not a sprint, but I am determined to lead from the front and get on with building genuinely affordable homes for Londoners to rent and buy.” He said that the measures “demonstrate
real progress on the long road towards fixing London’s housing crisis,” and that the investment means “we can start building a range of different affordable homes to suit Londoner’s needs.” “Together with my new planning guidance,”
he continued, “we can begin to boost the number of homes built in London and move towards a long-term strategic goal of half of all new homes being genuinely affordable.” According to the Mayor, previous national
rules on affordable housing included no investment for mainstream low-cost rented housing. Following negotiations between the
Mayor’s office and Government, investment in London can now be spent on a mix of homes for low-cost rent and affordable homeownership. The Mayor has stated there is no ‘one size
fits all’ approach to affordable housing in London, as the city needs a balanced mix of homes to rent and buy. The 90,000 affordable homes will be a mix
of low-cost rent, shared ownership and London Living Rent, which is based on a third of average household incomes in each borough. Most homes in the Mayor’s programme will
be delivered by housing associations, with the condition that their plans must include a minimum 50 per cent affordable housing, with some partners enabled to deliver at least 60 per cent.
Te Mayor’s plan:
• Set out a clear, consistent, and transparent approach to ‘viability’, the process through which a development’s affordable housing contribution is assessed • Offer developers a new, quicker route through the planning process, removing the requirement for protracted viability negotiations if they meet a minimum 35 per cent affordable housing • Support new ‘Build to Rent’ develop- ments, where institutions like pension funds invest in blocks of long-term private and affordable flats to rent
Industry Comments
Ian Fletcher, director of policy at the British Property Federation: “Te GLA has led the field in seeking to have a plan- ning policy on Build-to-Rent, and this latest guidance is immensely helpful to the sector and the Boroughs with which it works.
“What you want as a developer or investor, such as a pension fund, is clarity and understanding that rental homes are different to those for sale, which this guidance delivers. Te sector wants to deliver tens of thousands of quality rental homes for Londoners, and those at discounted market rent, in a tenure blind manner. Recognising the sector and how it works in this guidance is a big help.”
David Montague, chair of the G15: “Te Mayor has secured the very best deal for Londoners. He has listened to housing asso- ciations and given us the flexibility we asked for. Now we must get on with the job of building the homes that London needs.”
John Dickie, director of policy and strategy at London First: “It’s hugely encouraging to see the Mayor’s continued focus on building the homes London’s workers and families so urgently need. Giving greater clarity and guidance to housebuilders is a welcome step as we work towards a dramatic increase in housing and start building the 50,000 new homes London needs each year.”
Geeta Nanda, CEO of Tames Valley Housing Association: “Te settlement for London is a great success and allows us the flexibility to build a range of homes for the very many people who are looking to us to deliver the housing solution. Not only is this important for those with dire housing needs, but also for the economy. London needs its workers to be well-housed for the economy to grow.”
respond online at
www.hbdonline.co.uk
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