London mayor Boris Johnson has seeded a new London Housing Bank with £200 million to support housing developments in the capital. The bank will supply low cost loans with the aim of accelerating housing projects that would otherwise go ahead at a slower pace.
The funds are promised from interest rates as low as one per cent, and will be advanced to developers and housing associations. The aim is to promote both homes for sale, and the construction of new homes for rent. There is a specific encouragement to bring forward affordable rent homes, with a requirement that they are rented at a 20% discount to open market rents, for a minimum seven years.
“Through the pioneering housing bank, I’m challenging the capital’s developers to get building, and deliver the homes Londoners need, as fast as humanly possible. Loans are available from a £200 million pot to significantly accelerate the pace of development, especially on bigger schemes, and unlock additional supply.”