Khan vows to press ahead with TfL sales despite value for money warnings

Mark Sands
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Khan has vowed that half of all new homes in London should be affordable (Source: Getty)

London mayor Sadiq Khan has vowed to press ahead with the sale of Transport for London land, despite warnings his affordable housing plans will mean the sale comes in below market value.

Khan was warned earlier this week to warn that TfL is required to seek the best possible price when selling off assets like land, raising question marks over the disposal of a four acre site in Kidbrooke.

As reported by City A.M. on Monday, Khan was warned that as a result "TfL would not itself be able to develop the land in line with the Mayor’s aspirations for affordable housing"

However, the mayor has now decided to proceed by setting up a new joint-venture to complete the deal alongside a developer.

In a statement today, Khan said the Greenwich site would be the first of a wave of TfL-owned sites to be developed for new homes, with further locations expected to be confirmed in the Autumn.

TfL estimates the land, which was part of an RAF base could accommodate 400 homes and 5,000sq ft of commercial space.

London Assembly Conservatives transport spokesman Keith Prince described the move as “reckless”.

“This has overnight lowered the value of TfL's large property portfolio, meaning it is going to be harder to raise much needed funds to keep fares down,” Prince said.

“I also worry about the long term effects of this across London. Public bodies may begin to hold off releasing property for sale if they know they won't get its true value. This 'land-banking' may hold back house building- keeping the housing supply low and thus expensive.”

A spokesman for Khan did not respond to request for comment.