Mayor opens London Housing Bank investment scheme

Out-Law News | 29 Sep 2014 | 4:19 pm |

Mayor of London Boris Johnson has launched a £200 million scheme offering financial support to help speed up the building of up to 4,000 new homes across the capital.

Under the scheme the Housing Bank will offer low cost loans to developers to build homes which will be rented to Londoners at a low cost rent for seven years. Once the loan is repaid, the developer will have the option to sell the homes to current occupiers, put the homes onto the market, or retain them as long-term affordable rental homes.

The scheme is being launched at the same time as a national investment scheme is launched by the government to help boost house building.

“Through the pioneering London Housing Bank, I’m challenging the capital’s developers to get building, and deliver the homes Londoners need, as fast as humanly possible," said Johnson in a statement.

"Loans are available from a £200m pot to significantly accelerate the pace of development, especially on bigger schemes, and unlock additional supply. Through this exciting new fund we hope to provide thousands of brand new homes many years sooner than would otherwise be possible for hardworking Londoners,” the Mayor said.