It is predicted that London will need a further one million homes by 2031 and Johnson said that this funding which will deliver over 6,000 affordable homes and is being been allocated to 57 housing providers.
He said that building up this future pipeline of affordable housing is essential to maintaining the capital's economic competitiveness. With a rapidly increasing population at least 40,000 additional homes need to be built every year in London by the 2030s. Without these homes Londoners who work in the city will find it increasingly difficult to be able to afford to live there.
The Mayor is calling on the government to look again at granting the capital a continuous, reliable funding stream for housing enabling him to get the best deal for Londoners, negotiate longer term agreements with developers, and secure the housing the capital needs to continue to thrive and grow.
The funding announced yesterday i8s the next phase of the Mayor's Housing Covenant, his pledge to help those who contribute to London's economy to live in the city, and is in addition to his plans to deliver 55,000 affordable homes, which remain firmly on track.
Visiting one of his First Steps developments, which help families into low cost home ownership, in Bexley, Johnson said that London needs secure, reliable funding now to build the homes of tomorrow. ‘Over the last five years we have delivered record numbers of affordable homes, bought thousands of empty homes back into use and helped tens of thousands of Londoners on to the property ladder with part buy, part rent schemes,’ he explained.
‘However our funding stream is full of stops and starts making it challenging to plan ahead and get on with delivering the thousands of homes we need every year after that to accommodate London's growing population,’ he said.
‘With fair and continuous funding from the government, based on the vast sums raised through stamp duty on London's higher value homes, we can meet this need at no cost to the Treasury and go on to maintain London's position as the greatest city on earth,’ he added.
He also pointed out that schemes like the one at Bexley are on track to help over 50,000 Londoners to buy their own home by 2016, helping to reduce the pressure on London's overburdened rental market, all funded through the Mayor's First Steps programme.
The Mayor recently launched a new portal to help Londoners access all the information they need to buy or rent an affordable home including information about the government's Help to Buy fund which has allocated £500 million to Londoners.
At the development the Mayor met new home owner Damian Fichardo who moved in with his wife and two young daughters last year. Without the help of the Mayor's First Steps scheme Fichardo, who works at Victoria Coach Station, and his family would never have been able to move out of their rented accommodation and buy their own home.
‘It's every parents dream to secure a better future for their children. In the past I felt as if I was pouring money down the drain when I was in rented accommodation. I tried to get on the property ladder but didn't have enough deposit. Thanks to the Mayor's First Steps scheme I now own a wonderful apartment here in Bexley. We live close to my daughter’s school and near the train station and with Crossrail on the horizon will be even better connected to London,’ Fichardo explained.
Ian Gorst, managing director of Bellway Thames Gateway, welcomed the commitment to increasing the number of homes for people in London. ‘The government’s support for home buyers such as First Steps and Help to Buy, has kick started the housing market and is making more homes available to first time buyers and those wanting to take a step up the housing ladder,’ he said.
‘We echo the Mayor’s statement for long term predictability of funding as this provides more confidence to builders to invest in schemes such as Belvedere Park where we are increasing the pace of development. This new funding will stimulate development and create more employment opportunities while opening the door to many more people wishing to buy a new home,’ he added.
