Investment scheme launched to boost house building in London

10 April 2014 (Last Updated April 10th, 2014 18:30)

London Mayor Boris Johnson has unveiled proposals for a new investment scheme designed to speed-up house building in the capital.

Boris Johnson

London Mayor Boris Johnson has unveiled proposals for a new investment scheme designed to speed-up house building in the capital.

The London Housing Bank scheme would loan up to £200m to development partners to help them progress the development of around 3,000 homes on large-scale, multi-phase schemes, which have already been approved.

The homes would then be let to Londoners at sub-market levels for ten years before being sold on, with the loan repaid to City Hall.

The proposals follow research conducted by City Hall that found approvals have been granted for about 200,000 homes in London, which have not yet been constructed.

About three quarters of the approvals are on multi-stage regeneration developments of more than 500 homes, which are expected to take several years to complete.

Johnson said: "We're doing everything we can to double house building across the capital and address a 30 year failure to build enough homes for this thriving city."

"We hope to provide thousands of brand new homes…and make them available to rent at more affordable, below market, rates."

"The proposed London Housing Bank is just one of several highly innovative new schemes we are pioneering here at City Hall to help meet the needs of hard working Londoners."

"Through this exciting new fund, we hope to provide thousands of brand new homes many years sooner than would otherwise be possible, and make them available to rent at more affordable, below market, rates for hardworking Londoners."

Johnson has recently published his updated housing strategy with the aim to construct at least 42,000 new homes a year in the capital.

In 2013, Johnson unveiled plans to construct a 6ha floating village at the Royal Victoria Dock.


Image: London Mayor Boris Johnson. Photo: courtesy of Greater London Authority.