Mayor of London supports building 90,000 new affordable homes over the next five years

Mayor of London Sadiq Khan has announced new rules on the planning of new affordable homes in the capital as well as an investment of £3.15bn to finance their construction over the next five years.

The 90,000 new homes Khan plans will be available under a mix of tenures, including Shared Ownership, London Living Rent and low-cost rent, will new rules in place to support investment in these projects. Housing associations across the capital will be responsible for most of the construction, committed to building at least around 50-60% of affordable homes in any project.

The mayor is also announcing major changes to planning guidance – subject to a three-month consultation – in order to speed up decisions on wider new home development, with his new Supplementary Planning Guidance (SPG) aiming to raise affordable housing levels from the mere 13% demanded by previous Mayor Boris Johnson.

Building at least 35% affordable housing will accelerate the move to building, with further support of the Build to Rent sector. Sites owner by Transport for London will feature heavily in the new projects.

Khan says: “London is in the midst of a housing crisis, with thousands of Londoners priced out of a city they call home. 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.

“The record-breaking investment I have agreed with government means we can start building a range of different affordable homes to suit Londoners' needs. Together with my new planning guidance, 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.”

John Dickie, director of policy and strategy at London First, says: “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.” 

Ian Fletcher, director of policy at the British Property Federation, remarks: “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. The 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 – representing London's largest housing associations – says: “The Mayor has secured the very best deal for Londoners. He has listened to housing associations and given us the flexibility we asked for. Now we must get on with the job of building the homes that London needs.”

Geeta Nanda, CEO of Thames Valley Housing Association (TVHA), comments: “The 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. At TVHA we look forward to working with the GLA to help plug the gap.”

Killian Hurley, chief executive at developer Mount Anvil, adds: “This country faces a housing shortage – across every tenure with too few homes being built to meet the housing needs of the nation. This commitment of funds will help the industry deliver homes that London so desperately needs. At Mount Anvil, we understand that the industry has to build better homes as well as more homes, and look forward to working alongside our housing association partners to deliver these.”

Check out some of the new homes for sale in London currently.