Londons £5 Billion Housing Strategy

Mayor of London Boris Johnson has today announced a £5 billion investment plan to support the capital's housing market over the next three years.

The mayor’s office will work with the new Homes and Communities Agency (HCA) to put nearly £2billion a year into building new homes and improving the existing stock.The strategy includes a range of innovative ideas that will replace outdated policies, which no longer apply to the current housing market and economic climate in London.

Under the plan , the Greater London Authority (GLA) will :

• Resurrect stalled residential developments

• Acquire unsold market homes for affordable housing

• Bring forward public sector land for new developments

• Subsidise rent and rent-to-buy schemes

• Raise the household income limit to £72,000 for low-cost ownership schemes.

Johnson said: “The strategy focuses not only on the issues facing the housing market in these difficult times but the historic problems of affordability, homelessness and overcrowding… By enabling ordinary Londoners to move from being subsidisers to being investors in new homes, we will provide timely support to a struggling development sector and can expect a return on our investment in years to come”