Towards the end of October the Mayor of London revealed some ambitious targets for house building in the capital between now and 2021. These will be explored in more detail in a new assessment of housing need set to be released in November and the latest London Plan. The objectives could have a huge impact on investors in the capital.
The headline grabbing target is a plan to ensure that 65% of all homes built are affordable. The current average for new projects that have earned permission is 38% affordable housing. It has taken a lot of work to get to this point, seeing many local councils in the capital getting stricter with their planning policies. More work will be needed to hit the new target though.
To achieve the new target a total of thirteen London Boroughs, including Ealing, will need to double the number of affordable properties they ask developers to create on projects. This could have a really big impact on every single new project.
In 2016 the Mayor of London’s office secured £3.15 billion of funds to be used in building affordable homes. This accounts to £0.7 billion per year until 2021. It is hoped the funds, although less than in many previous years, will be enough to build 90,000 homes.
The second change that has grabbed attention is the aim to build 66,000 new homes every year. This is a dramatic increase over the existing target of 29,000 and could mean a lot more work for developers.
At Finefair we are excited to see what impact the new targets have on investors. We are proud to be a leading resource for property investment Ealing investors can work with for the long term, capable of explaining the various options available to clients. We also offer ongoing services such as portfolio management and rent guarantees.
If you would like our help please get in touch. We will consult with you, ensuring we can tailor a service to suit your exact needs. Our team are experienced with property investment and will do all we can to provide maximum benefits.