Sadiq Khan, The Mayor of London, has published the proposed new planning guidance, which has been put in place to increase the speed of which affordable housing is developed.
Over the next five years, the capital is planning to constrict 90,000 new affordable homes.
Now out for discussion, The Supplementary Planning Guidance (SPG) has confirmed that if developers are to meet a minimum of 35% affordable housing, they will dodge the requirement for protracted viability negotiations.
The mayor outlining how the investment of £3.15bn will be encouraging some 90,000 new affordable homes in London over the next 5 years originated the publication of the SPG.
Based on 1/3 of average household incomes in each borough, these affordable homes will be a combination of low-cost rent and London Living Rent.
With the term that 50% of the housing developed must be affordable, most of the Mayor’s program will be delivered by housing associations.
In cases where institutions like pension funds invest in blocks of long-term private and affordable flats to rent, the new ‘Build to Rent’ developments are supported by the Supplementary Planning Guidance.
The Supplementary Planning Guidance provides direction for a planning covenant to cover specific planning permission for rental developments, with arrangements to recover if any units are to be sold outside of the rental market.
It had been spoken about by Sadiq Khan that the target for affordable home provision is 50%, he insists that that remains to be the goal.
“The record-breaking investment I have agreed with government means we can start building a range of different affordable homes to suit Londoners’ needs. Together with my new planning guidance, we can begin to boost the number of homes built in London and move towards a long-term strategic goal of half of all new homes being genuinely affordable.”
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