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It's probably not an exaggeration to say that the words "affordable housing" and "London" don't appear in the same sentence too often, unless, of course, it's to bemoan the chronic lack of the former in the latter. However, new London Mayor, Sadiq Khan, has expressed his determination to significantly increase the supply of "genuinely affordable" housing in the capital. Naturally, he isn't the first politician to make this type of grand pledge while seeking office, but the early indications are that Mr Khan is absolutely determined that his manifesto promise will be realised. He has, for instance, published two major policy documents in recent weeks, setting out his vision for housing in London. In this article, we look at the twin consultation papers and at some of the Mayor's other important interventions in the market.

Affordable Homes Programme 2016-21 Funding Guidance

This long-awaited paper details how Mr Khan envisages spending the £3.15 billion he was recently promised by the Government to support the construction of a minimum of 90,000 affordable housing units between 2016 and 2021. The guidance document additionally sets out measures designed to ensure that the resulting new residences are accessible cost-wise to lower income families. The stated intention of the paper is to assist housing associations, London borough councils, community agencies and private property developers in their efforts to build new affordable homes across the capital. It also explains how these bodies can apply for financing from the Mayor's office, and the rules and regulations around the application procedure.

The sorts of projects being planned are broadly categorised in the following ways:

1) London Affordable Rent - aimed at helping families with low incomes
2) London Living Rent - aimed at helping first time buyers with average earnings to save for a deposit on a home
3) London Shared Ownership - aimed at those individuals and families who aspire to buy a property, but who are currently priced out of the London property market.

For those interested in the proposals, the full policy document can be found at https://www.london.gov.uk/file/11941201. In response to an unprecedented volume of queries, the Mayor's office has also published a FAQ document to accompany the Funding Guidance, and this can be found at https://www.london.gov.uk/sites/default/files/hfl_2016-21_-_faq.pdf. Enquiries should be addressed to [email protected].

Affordable Housing and Viability Supplementary Planning Guidance

Mr Khan has repeatedly said that his longer term strategy is to ensure that some fifty per cent of all new builds in London are "genuinely affordable". He proposes to accomplish this aim by a combination of measures:

1. By dedicating public funds to affordable housing schemes
2. By repurposing public land for affordable homes
3. By modifying the planning regime so that more affordable homes can be built more quickly.

These policies can't, of course, be accomplished overnight. A so-called "London Plan" incorporating these aims is currently being drafted and will be published for consultation in autumn this year. In the interim, however, the Affordable Housing and Viability Supplementary Planning Guidance (SPG) consultation sets out principles to make sure that the current housing policy is as effective as possible in delivering affordable homes.

For interested parties, the draft paper can be found at https://www.london.gov.uk/sites/default/files/draft_affordable_housing_and_viability_spg_2016.pdf. If you wish to respond to the consultation, you should send your input to [email protected] by 28 February 2017. Responses to this draft will be taken into consideration by the authors of the upcoming London Plan.

Employers asked to play their part

In a widely publicised move, Mr Khan has made a speech asking that London employers provide loans to their workforce to help pay rental deposits. This request is an important strand of a much larger campaign labelled "Fifty Thousand Homes", which asks for employers not only to pay their workers the London Living Wage but also to offer advice and support to any employees who might be struggling with housing problems. The Mayor confirmed that the constituent parts of City Hall Group would in future be offering their workers loans for their rental deposits. Accordingly, such organisations as the London Fire Brigade, the Metropolitan Police and Transport for London, among others, will also be delivering this extremely helpful service to staff. Announcing this intervention, Sadiq Khan asked that other companies follow City Hall's example. He said that it is "unacceptable" that Londoners are being "priced out" of their own city, a view to which many social justice think tanks and housing charities equally subscribe. Roger Harding, Director of Communications, Policy and Campaigns at Shelter, for instance, described the Mayor's efforts as "great to see.”

Planning controversies

The Mayor has further signalled his intention to get to grips with London's housing crisis by announcing that he was reviewing two major planning applications - one in Haringey and the other in Harrow - which were rejected by their respective councils. Had the relevant planning permission been granted, the schemes would potentially have created hundreds of affordable homes for Londoners. Haringey Council is reported to have refused an application for the construction of around 505 homes, on the basis that components such as a 21 storey tower block would be too tall for the area and would adversely affect nearby green belt land. Similarly, an application to build 186 homes in a 17 storey tower in Wealdstone was rejected by Harrow Council, on the grounds that it would be too tall a construction for the neighbourhood. Mr Khan has passed the applications to housing experts at City Hall, in the hope that they can modify the plans to make them more acceptable to councils. Developers have long contended that councils are unhelpful and unduly obstructive when presented with planning applications, and the Mayor's intervention is seen as serving notice to councils that they need to play their part in ensuring that much-needed new homes are delivered.

The team here at Nethouseprices will be monitoring these stories as they develop. Visit us again soon for more news, commentary and analysis of the most important property market issues.