The Mayor of London, Boris Johnson and the Homes and Communities Agency (HCA), have unveiled a multi-million pound initiative which will help thousands of Londoners to get onto the property ladder as well as providing millions of pounds to kick start affordable housing developments that have stalled during the economic downturn.

The funding package will deliver around 3,000 new affordable homes for Londoners across a range of sites, and is also kick starting the Mayor's 'First Steps', low cost home ownership initiative, a major manifesto commitment. First Steps is designed to promote a range of products that help more Londoners to own their own home by offering a flexible alternative to the full expense of open market options.


Half of the package is a portfolio of sites being rolled out by London & Quadrant Housing Trust (L&Q). A £42 million investment by London HCA Board will support the delivery of nearly 500 'intermediate rent' homes, which will offer occupiers a discounted rent (at 80% of the market rate) for as long as they need, until they are in a position to buy. This new package of intermediate rented homes – which L&Q will market as 'Up2U' - will trigger nearly 900 additional affordable homes for rent on the sites concerned, so the total L&Q package amounts to more than 1,400 new homes.

The HCA London Board also confirmed that it will allocate a further £93 million at five stalled development sites over the next 12 months, as part of its new £135 million strategy to kick start housing construction in the capital. This will see a further 1,500 units, with a longer term potential to provide 6,000 more, of which well over a half will be affordable homes. As well as providing flexible low cost home ownership opportunities, this huge boost to the London housing market will support the construction industry during the downturn, safeguarding jobs, and leading the way for a UK wide approach to tackling the downturn in the housing sector.

(CD/JM)