London set to receive £1bn slice of HCA investment

The Homes and Communities Agency has announced the winning bidders for its £1.8bn Affordable Homes Programme.

The HCA selected 146 partners to deliver 80,000 new affordable homes which will help the government exceed its target to deliver 150,000 affordable housing units during the 2011-2015 spending period.

It is now anticipated around 170,000 new affordable homes will be delivered over that period.

Subject to the signing of contracts, investment will be split between each of the HCA’s six operating areas – with London set to receive 27% of the total number of homes.

For the capital this equates to an investment of £1bn which will help Mayor Boris Johnson realise his delivery target of 53,000 new affordable homes in the city by 2015.

Commenting on the announcement Pat Ritchie, chief executive of the HCA, said: “We expect to not only deliver exceptional value for money but also a programme that has a strong fit with local priorities as we move into the delivery phase of the Affordable Homes Programme.

The National Housing Federation also welcomed the announcement that housing associations will build around 90% of the 170,000 homes.

Federation chief executive David Orr added: “The fact that housing associations are going to build the vast majority of the nation’s affordable homes over the next four years – despite the housebuilding budget having being cut by 63% – is a testament to their innovation and ability to manage risk in difficult situations.

Mayor of London, Boris Johnson, believes the investment will provide a boost to the capital’s construction sector. He said:

“In these tough economic times, this is a really good deal. I am pleased that the hard work of the GLA, the boroughs and the providers has paid off and we have agreed a programme which will deliver high quality, affordable housing for around a quarter of a million Londoners.

“This new programme will provide a major boost to London’s construction sector which is so important to the capital and the UK ’s economy, securing thousands of jobs and new training opportunities.”