Arthur investigates what Sadiq Khan is doing to try and end the housing crisis in London
Since the global recession in 2006, it is hard to deny the presence of a housing crisis in London; affordable homes are offered at a restricted supply. It is becoming increasingly difficult for first time buyers or lower income individuals to purchase property. Sadiq Khan adopted a contrasting approach to Boris Johnson when trying to resolve this issue. Sadiq Khan’s plan to resolve the housing crisis instead mirrored a Keynesian economic approach. Perhaps most importantly, he secured a record breaking investment of £3.15bn to support the building of more houses. Significantly, he also enacted a policy where regulations for developers would decrease if 35% of their properties built were classified as ‘affordable’. These two policies would lead to rising housing production, with an increasing proportion of ‘affordable’ homes being built.
We have now finally seen the first significant example of this policy. The first 100% affordable home development for first time buyers in London has been announced; an industrial state will now be transformed to include 330 homes. All of which have been deemed as ‘affordable’. Moreover, a proportion of these homes will be available as a shared ownership. The shared ownership is one of the Mayor’s favoured housing projects. The shared ownership provides the chance for home buyers to purchase a share in a new home, and pay a regulated rent for the unsold share.
All prospective buyers in London have to hope this is the first of many projects which can help alleviate the housing crisis.