The three boroughs of Westminster, Kensington and Chelsea, and Hammersmith
and Fulham are proposing to borrow against their “extremely valuable” housing
assets to build the homes.
Today they will submit their plan for a pilot scheme of 300 homes on a new
“middle-class” estate to the Communities Secretary, Eric Pickles.
The councils say many working families on average incomes struggle to afford
homes in central London, where a typical family home costs £1 million.
Officials from Mr Pickles’s department are believed to have worked with the
councils on their plans.
The councils’ business case states: “Home-ownership is increasingly
unaffordable except to households on very high incomes, and families on middle
and lower incomes are being driven away from the area.”
The families living in the heart of London are either very wealthy — in
second homes or properties that are larger than they need — or very poor, in
social housing and often out of work.
Jonathan Glanz, Westminster city council’s cabinet member for housing and property, said the plan aimed to give hard-working people on average salaries “at least some chance” of living in central London. “At present they are simply priced out,” he said. “We need to continue ensuring that we provide for a wide range of people and maintain mixed communities, including middle-class people on middle-range salaries.”
Ministers have given councils more power to manage housing assets. However, the three London boroughs say they need further flexibility to deliver their plan. They want the freedom to borrow more money against the £2.4 billion value of their stock of 4,000 houses, and to charge higher rents to the middle-class families who move into the new homes.
The proposal, which would cost £53 million, would create a surplus from rents of £500,000 a year for the first 10 years. The councils also believe that the project will generate 700 jobs in the construction industry and create a culture of “ambition” among residents to move up the housing ladder and progress in their careers.
Jonathan Glanz, Westminster city council’s cabinet member for housing and property, said the plan aimed to give hard-working people on average salaries “at least some chance” of living in central London. “At present they are simply priced out,” he said. “We need to continue ensuring that we provide for a wide range of people and maintain mixed communities, including middle-class people on middle-range salaries.”
Ministers have given councils more power to manage housing assets. However, the three London boroughs say they need further flexibility to deliver their plan. They want the freedom to borrow more money against the £2.4 billion value of their stock of 4,000 houses, and to charge higher rents to the middle-class families who move into the new homes.
The proposal, which would cost £53 million, would create a surplus from rents of £500,000 a year for the first 10 years. The councils also believe that the project will generate 700 jobs in the construction industry and create a culture of “ambition” among residents to move up the housing ladder and progress in their careers.
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