London mayor Sadiq Khan will today unveil plans to earmark £250m for City Hall to use for buying and preparing land for new and affordable housing.
The plans, to be published today under a first draft housing strategy for London, say the funds will be used alongside the £3.15bn affordable housing budget announced last year in the Autumn Statement.
The money made from selling this land to housebuilders will be recycled to buy further land for new affordable homes as Khan works to start the building of 90,000 new affordable homes by 2021.
However, Anthony Codling, equity analyst at Jefferies, said the plan is easier said than done.
"Clearly any additional government funds invested into housebuilding is helpful, although suggesting that this will lead to the start of building 90,000 affordable homes is easier said than done, because private sector housebuilders choose to build homes only if the returns are attractive," Codling said.
"If the mayor’s funding makes the building of an additional 90,000 affordable homes viable they will be built, if not I suspect they won’t."
In addition, Khan will announce plans to bring London's private tenants and landlords together to develop plans for a new "London model" of renting, providing better rights and more security for renters.
Khan will call on the government to provide a comprehensive and urgent devolution of funding and powers.
“From £250m to kick-start my plans to secure more land for new and affordable homes, to a new model and fairer deal for millions of private renters, I want to help all Londoners facing the housing crisis," Khan said.
"I will use my powers and resources to their fullest extent, but government needs to play its part too by giving London the powers and resources we need to see an even greater step-change in the number of homes being built."
The announcement today marks the start of a three-month consultation.
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