City Hall Desk

The Mayor of London, Boris Johnson, today called upon the new government to protect vital investment in housing as he announced that he is more than halfway towards delivering 50,000 affordable homes, a record number for Londoners, by 2012 despite challenging economic conditions.

The Mayor, who is investing over £1 billion a year through the Homes and Communities Agency (HCA), was speaking at the opening of a UK flagship supported housing scheme, Arlington, in north London; a new model for community living providing vocational onsite training as well as accommodation and recreational spaces for the homeless.   

The Mayor, who has now delivered 26,014 affordable homes over the past two years, believes that it is more crucial than ever that investment continues in high quality, good value affordable housing, especially family sized social rented housing to tackle overcrowding. He said:

"Despite hugely challenging economic circumstances, we are well underway to deliver a record number of new affordable homes - 50,000 by 2012, including the largest proportion of family sized units for a decade. But it is vital that London's housing problems do not choke off growth in the capital and resulting national prosperity and this needs continued investment.

"We are making great strides in tackling overcrowding and these new homes will house families who desperately need them, safeguard jobs and help to cut housing benefit bills, which last year reached £20 billion in the UK, by reducing the need to house people in expensive temporary accommodation. Continuing to invest in London is investing in the rest of the country. You need Londoners housed and working to fuel the motor driving the UK economy into lasting recovery."

The Mayor is committed to ensuring that by the end of 2012 no one will live on the streets in London. Today, he also outlined an unprecedented agreement reached with the London boroughs through the London Delivery Board that by the end of 2012 no individual arriving on the streets will sleep out for a second night.

David Orr, Chief Executive, National Housing Federation said: "Arlington House is an excellent initiative which recognises the importance of not only finding people a home but also of giving them a chance of work. We welcome the Mayor's determination to end rough sleeping by 2012.

"It is essential that the government maintains its investment in affordable housing both in the capital and throughout the UK. Providing good and decent accommodation not only provides a place people can call home but also helps prevent serious health and educational problems. There has never been a more important time to invest in housing which can help end massive overcrowding and growing waiting lists."

Campbell Robb, Chief Executive, Shelter said:  "The capital has some of the greatest housing need in the country, with 330,000 children living in overcrowded homes, over 350,000 on housing waiting lists and an expensive private rented sector. The only way to tackle London's housing crisis is to build more affordable housing, particularly social rented homes for those in greatest need.

"Shelter welcomes the Mayor's commitment to delivering family-sized affordable homes and we echo his call on the government to protect investment in housing to help deliver homes and jobs not just in London, but across the country."

Sarah Webb, Chief Executive, Chartered Institute of Housing said:
"I'm delighted that George Osborne has committed to making housing a front line service. However, CIH believes this commitment must go hand-in-hand with ongoing investment in new homes. In London the need for affordable housing is stark - a shortfall in investment would hit thousands of families hard, as well lead to economic pain in the construction sector and housing supply chain."

Despite London's prosperity, half of England's rough sleepers are found in London and over three quarters of the country's households in temporary accommodation are found in the capital. Overcrowding is rapidly growing and since 1997 London's housing waiting lists have increased by over 50 per cent.

Seven of the eight biggest UK regeneration projects are currently under development in London, and all include substantial numbers of new homes. Maintaining housing investment in London pumps large amounts of money into the sector as a whole enabling the delivery of many projects outside the capital.