Mayor Biggs has welcome council house funding from City Hall
Tower Hamlets Mayor John Biggs has welcomed Mayor Sadiq Khan’s pledge to allocate £13 million to Tower Hamlets to support the delivery of 675 new council homes at affordable rents over the next four years. This will contribute towards the Mayor’s overall target of delivering 2,000 council homes by 2022.
This grant adds to the council’s £85m funding for new council housing secured from council house Right to Buy receipts.
Mayor Khan announced that he had agreed plans worth more than £1 billion with 26 London boroughs to build 11,000 new council homes across the capital at social rent levels.
The funding comes through the Mayor of London’s Building Council Homes for Londoners’ programme, which Tower Hamlets successfully bid for funds from. The Tower Hamlets’ programme includes 675 homes at affordable rent that will have started to be built by March 2022.
John Biggs, Mayor of Tower Hamlets, said: “Tower Hamlets has seen the largest increase in population in the country since 2001. Our current population is expected to grow by nearly 50,000 by 2026.
"I am pleased that our bid for £13 million of funding from the Mayor of London has been successful. This will complement our existing programme of providing new council homes at genuinely social rents.
“I’m committed to deliver 2,000 new council homes by 2022 and am also working closely with the Greater London Authority and local housing associations, to deliver affordable homes. Last year we delivered the most affordable homes in the country but we are not complacent and will continue to make housing a key priority.’’
Cllr Rachel Blake, Deputy Mayor for Regeneration and Air Quality said: "We are seeing record levels of growth in the borough - we want that growth to benefit everyone and so it is vital that we build more genuinely affordable homes. It’s really good news that City Hall is providing funding for our Council home building programme, supporting us to create great places where Tower Hamlets residents can thrive.’’
In addition to funding, the Building Council Homes for Londoners’ programme offers boroughs an innovative way to ringfence their Right to Buy receipts. This will allow councils to invest in new homes, alongside access expertise and resources from City Hall to scale up their homebuilding programmes. It sits alongside the Homebuilding Capacity Fund, announced Friday 19 October, a £10 million fund that allows boroughs to bid for up to £750,000 each to help boost their housing and planning teams.
The Mayor of Tower Hamlets has committed to expand the supply of genuinely affordable housing for local residents through a range of approaches including new builds by the council, grants to local housing associations, purchasing properties and converting existing properties into new homes.
Definitions according to the Government’s National Planning Policy Framework
Affordable housing: Affordable housing includes socially rented, affordable rented and intermediate housing provided to eligible households whose needs are not met by the market. Eligibility is determined with regard to local incomes and local house prices. Affordable housing should include provisions to remain at an affordable price for future eligible households or for the subsidy to be recycled for alternative affordable housing provision.
Social rented housing: is owned by local authorities and private registered providers (as defined in section 80 of the Housing and Regeneration Act 2008), for which guideline target rents are determined through the national rent regime. It may also be owned by other persons and provided under equivalent rental arrangements to the above, as agreed with the local authority or with the Homes and Communities Agency.
Affordable rented housing: is let by local authorities or private registered providers of social housing to households who are eligible for social rented housing. Affordable rent is subject to rent controls that require a rent of no more than 80% of the local market rent (including service charges, where applicable).
Intermediate housing: is homes for sale and rent provided at a cost above social rent, but below market levels subject to the criteria in the affordable housing definition above. These can include shared equity (shared ownership and equity loans), other low cost homes for sale and intermediate rent, but not affordable rented housing.
Homes that do not meet the above definition of affordable housing, such as “low cost market” housing, may not be considered as affordable housing for planning purposes.
Posted on Monday 5th November 2018