London to benefit from 50,000 new homes

Posted: 21 Nov 2008 12:13:49 GMT

London mayor Boris Johnson has announced plans to invest £5 billion into the capital's homes, in order to create 50,000 new living spaces.

It was announced yesterday (November 20th) that the mayor intends to invest the money not just into building but also the renovation of homes in the London area.

The figure of 50,000 is one set by former mayor Ken Livingstone before Mr Johnson took power in May this year.

Mr Livingstone's plans included twice the number of affordable homes though, marking Mr Johnson's own plans out significantly.

Mr Johnson explained: "The strategy focuses not only on the issues facing the housing market in these difficult times but the historic problems of affordability, homelessness and overcrowding.

"By enabling ordinary Londoners to move from being subsidisers to being investors in new homes, we will provide timely support to a struggling development sector and can expect a return on our investment in years to come."

While affordable homes in London are only now becoming a faint reality once again, the fees charged by estate agents will no doubt still price some first time buyers out of the market for some time yet.

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