Mayor Sir Robin Wales and Mayor of London Sadiq Khan have agreed a deal in principle that could see additional affordable housing worth £40 million introduced across the borough.
Mayors set for £40m housing grant deal on affordable homes
The deal centres around the proposed development of the vacant Parcel Force depot site in Stephenson Street, Canning Town, which could see 3,800 properties built by developers Berkeley Homes in phases over ten years as well as a secondary school and a community centre - writes newham.gov.uk.
The site is owned by the Mayor of London. Under a legally binding procurement process by Mr Khan’s predecessor Boris Johnson, Berkeley Homes are required to provide only 35 per cent affordable housing in the proposed development. Mr Khan however has a strategic commitment to deliver 50 per cent affordable housing on public land.
A memorandum of understanding has been agreed between the two mayors that an affordable housing grant equivalent to the value of 15 per cent of affordable housing on the site be given to Newham.
The grant would equate to £40m, or in the region of 1,020 affordable homes, which could be built anywhere across the borough by 2021. The deal does depend on planning consent for the Stephenson Street scheme, which will soon be considered by Newham councillors.
Sir Robin said: “I am delighted to have worked on a deal with Sadiq Khan that is set to see Newham receive a £40m housing grant that would greatly benefit the people of Newham by offering them access to more affordable housing. It would help us achieve our target of thousands of new homes and the Mayor of London’s target of 90,000 new affordable homes by 2021.
“Newham Council is doing all it can to increase the number of affordable homes in the borough. Mayor Khan recognises that Newham did not get the full legacy benefits from the 2012 Olympic Games and Paralympic Games, particularly in housing. We are working together to right the wrongs of the previous administration at City Hall.”
The two mayors worked together only recently to secure legacy promises made to residents. Newham Council agreed that the Mayor of London’s Greater London Authority will take full ownership of the London Stadium while Newham retains its community benefits for residents.
Added Sir Robin: “The gains from Newham Council’s original £40m investment into the stadium have already far exceeded the amount we invested. We are now looking to secure another deal with £40m of affordable housing potentially coming our way.”
Read more news of London on our site.