Mayor of London Sadiq Khan has invested £25m in a private property developer to boost London’s affordable housebuilding.
The investment, part of Khan’s £3.15bn Innovation Fund, will enable developer Pocket Living to finance the delivery of at least 1,059 affordable homes by March 2021.
The ‘pocket’ homes – typically one and two-bed flats – are aimed at first time buyers already living in the area. A third of the properties will be built offsite to speed up delivery, and all homes will be sold at least 20 per cent cheaper than market sales.
The Mayor of London, Sadiq Khan, said:
“The housing crisis is the biggest challenge facing Londoners today and I have been honest from the start that we won’t be able to turn things round overnight.
“That is why I am working with Pocket Living to build more than a thousand homes for first-time buyers, using the latest off-site construction techniques to provide attractive and affordable homes as quickly as possible.”
The investment, to be repaid in full by 2030, will be used alongside £35m of funding from the Homes and Communities Agency to build homes on the first set of sites to come forward.
Homes and Communities Agency Chief Executive Nick Walkley said:
“This deal is an important contribution to much-needed affordable housing in London. By lending £33.5 million from the Government’s Home Building Fund, the Homes and Communities Agency is helping to unlock the construction of new homes, giving first-time buyers in London a real chance to get their foot on the housing ladder.”
Marc Vlessing, CEO of Pocket Living, said:
“We are proud to receive the Mayor’s backing for Pocket Living’s award-winning approach to design and the use of modern methods of construction to help those priced-out and not eligible for social housing to get onto the property ladder. Delivering homes for Londoners means initiatives between the public and private sector are crucial for the capital to thrive in the years ahead.”