Cash to be split between low-cost homes schemes

London housing

Mayor of London Boris Johnson has committed up to £220m to fund the delivery of 6,000 new “affordable” homes in the capital over the next 10 years.

Johnson said today that up to £180m was being allocated to deliver 4,000 of the homes via shared-ownership through the Mayor’s First Steps Challenge Fund.

City Hall staff said the cash was being made available on a recoverable basis so that repaid funds could be reinvested.

A further £40m will help to fund up to 2,000 additional homes through a London version of the Gentoo Genie Home Purchase Plan, which helps people buy a home over a 30-year period without the need for a mortgage.

Announcing the packages at Erith Park, in south-east London, Johnson said shared ownership was crucial in helping the unprecedented number of people in London find good-quality, low-cost housing.

“I want the funding announced today to help thousands more Londoners own homes and create more developments like Erith Park, excellent affordable properties,” he said.

Erith Park is being delivered by Orbit Housing in conjunction with Wates Group’s Wates Living Space affordable housing programme.

The Gentoo funding is based on a pilot project that ran in the North East and will last for 10 years. It targets long-term renters who may be unable to get together a large enough deposit to buy homes with a traditional mortgage.

The First Steps Challenge Fund money is available for the five years to 2020.