The mayor of London has announced £1bn of funding and a package of other measures to deliver thousands of new homes in the capital by 2018. Boris Johnson launched his draft housing strategy with a warning that London needs at least 42,000 new homes a year to cope with soaring population growth.
Peter Vaughan, London-based Director at global architecture, urbanism and design practice Broadway Malyan – which has designed a number of significant residential and mixed use schemes across London – said:
“The mayor is right to include financial incentives to help home-buying and is acknowledging the risk that subsidised development may sustain land prices. However, ultimately it will prove difficult to buck the market trend whereby developers go to the Far East to sell off-plan for an initial return on expensive land.
“The UK doesn’t currently have a domestic solution to solve its housing crisis and it must look to overseas models – and namely the private rented sector. Major investors are increasingly acknowledging this and will gear up to build, own and let more housing.
“While there may be a buy-in, equity share or release options over time, it is the private rented sector that will accommodate the majority of people who want to live, work and spend money in the capital – we will see a major shift towards private and affordable rented, rather than private and affordable ownership – it is the end of the Englishman’s castle as we know it.”
Johnson’s strategy proposes a string of measures to radically boost the delivery of new homes – including the creation of ten ‘housing zones’, a ‘London Housing Bank’, devolved stamp duty land tax and other property taxes, expansion of ‘First Steps’ (the GLA’s first-buy programme) and development of new, 21st century ‘garden cities’.
The draft housing strategy will be open for public consultation until February.
Distinguished by its global reach with 16 studios across world centres, unrivalled diversity with over 450 design experts and distinctive client focus with over 85 per cent income from repeat business, Broadway Malyan creates world-class and fully-integrated cities, places and buildings to unlock lasting value and deliver a ‘return on design’.
Pictured – London’s tallest residential building, ‘The Tower, One St George Wharf’, designed by Broadway Malyan and currently completing on the bank of the River Thames in Nine Elms.