Councils and housing associations in London are to build an extra 50,000 new affordable homes to rent and buy over the next four years. London mayor Sadiq Khan has brokered the deal with the capital's boroughs and 44 housing providers to help meet his pledge of 90,000 new homes by 2020-21.
The £1.7billion needed to finance the massive project will come from the £3.15bn affordable homes fund provided by the government for London last year.
The total of 49,398 affordable homes will be built across all 32 boroughs and the City of London with 17.500 available for social rent and the remainder sold or rented through shared ownership and the London living rent, which is aimed at middle-income earners whose long-term aim is to secure a deposit for shared ownership.
New partnerships to deliver thousands of affordable homes
Mr Khan said: "It is simply unacceptable that Londoners continue to be priced out of a city they call home. We know that solving the housing crisis is not going to happen overnight, but I very much welcome so many housing associations and councils matching my ambition by committing to build the new and genuinely affordable homes Londoners so desperately need.
"I am delighted that we have set a City Hall record for the number of homes allocated funding, but I am clear that we have got much more to do to secure the land we need to build homes and ensure we have sufficient capacity in the construction industry."
Eight strategic partnerships will now be established between City Hall and housing associations including Peabody, Clarion, Genesis, Hyde, Network and Notting Hill. These partnerships will provide at least 60 percent affordable housing and deliver 38,500 affordable homes.
High prices put properties out of reach
Paul Hackett is chair of the G15, which represents London's largest housing associations. He said: "The partnership with the Mayor is the biggest London's housing associations have ever committed to, reflecting the urgency of the housing crisis and our strong relationship with City Hall."
While there has been a slowdown in London house prices in the last 12 months, the average price to buy a home in London is around £480,000, putting buying their own home beyond the means of many of those who live and work in the capital. First-time buyers are particularly disadvantaged, with the average deposit around £90,000, though they can participate in specific government help-to-buy schemes for those buying in London.
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