Johnson has invited bids from organisations to deliver proposals for housing projects across the capital. These include helping people on a range of modest incomes to own a share in their own home, which Johnson said could help to house 10,000 people wanting to live in the city they work in.
Proposals are sought from organisations such as London Boroughs, housing associations, developers, house-builders and charities.
Homes provided will be in a range of locations across the city and will be offered to working London households on a range of incomes up to a maximum joint income of £64,300 per annum, with some flexibility for families with dependents.
The funding is part of the Mayor's 'First Steps' programme and is aimed at boosting the construction industry and helping London to maintain its economic vitality. Johnson said the investment had the potential to boost the London economy by £2bn.
"London’s success is built by its workforce and if we are to maintain our vitality as a city we have to provide Londoners with a fairer housing deal," Johnson said. "For an increasing number of Londoners the capital’s current housing market is just not working and failure to deal with the issue could lead to a damaging exodus that will hamper our competitiveness."
"To improve the housing choices of those who work to make this city the fantastic place that it is, I am opening up the market, cutting red-tape and injecting £100m worth of investment to stimulate supply. The programme we are announcing will not just unlock the door to home ownership for thousands more Londoners, it will give a welcome shot in the arm for jobs in the capital’s construction industry and spur wider economic growth too," he added.
The Mayor has said that any reusable investment from the funding will be reinvested in delivery of further affordable homes over the next decade.
Bids must be submitted to the Greater London Authority by 30 November 2012. The first homes are expected to be available for sale in the spring 2013.
