UK housing providers have received about £1.3bn of funding, including £886m from the Homes and Communities Agency (HCA) and £404m from Mayor of London Boris Johnson, for the construction of thousands of new affordable homes in London.
HCA’s contribution is part of its £1.7bn affordable homes programme, where it plans to build 165,000 new affordable homes between 2015 and March 2018.
By using HCA’s initial funding, around 160 housing providers will build a total of 43,821 new affordable homes across 2,697 schemes.
The rest of the funding will be available to providers in due course through its continuous market engagement (CME) programme.
HCA CEO Andy Rose said: "The allocations announced today are closely aligned with locally identified priorities and offer value for money and increased certainty of delivery, with over 75% of the homes we are funding on firm schemes.
"Just over half of the available funding has been allocated. The remaining funding will be allocated on a continuous market engagement basis, giving even more partners time to work up deliverable bids to meet local needs and their future development aspirations.
"This is a strong foundation that we are putting in place today, which puts us on track to make a significant contribution towards government’s aspirations for up to 165,000 new affordable homes by March 2018, while supporting overall housing supply and local economic growth."
The contribution made by the Mayor of London is part of the £1.25bn package to develop 45,000 affordable homes in the capital by 2018, which also includes funding for the London Housing Bank and Housing Zones.
Under the £404m package, the 54 housing providers will deliver a total of 3,135 homes in the capital.
From the allocated funds, the Mayor will use £85m to develop an innovative revolving fund that could see up to 5,000 homes built in the city over a period by recycling investment.
Johnson said: "The only way to address the huge demand for housing and tackle the 30-year back log of under supply is to build more homes.
"We’ve worked closely with expert housing providers to ensure this funding will deliver much needed low-cost homes across the capital. These latest funds, together with innovative measures to unlock land and development being pioneered by City Hall, will produce thousands more good quality affordable homes for Londoners to rent and buy.
"We will continue to work with the government, developers and investors to drive forward and deliver the thousands of homes needed in the capital."