G15 to raise £2bn for 13,100 affordable London homes

Aaron Morby 12 years ago

London’s largest housing associations will jointly raise more than £2bn of private finance for new homes over the next four years.

The G15 group of the capital’s largest landlords was allocated £350m last week under the £1.8 billion affordable homes programme.

The powerful housing association group has revealed details of the funding plan, which will see its members build over 13,000 new affordable homes across London.

Over the next four years around 6 in 10 of the capital’s affordable homes will be delivered by the G15 housing associations – who plan to stretch the Government’s £350m funding with more than £2bn of private finance and other resources.

Ministers have revealed that nationally, housing associations will build around 90% of the 170,000 affordable homes set to be constructed by March 2015 under the Government’s new funding model.

The G15 previously voiced concerns over the new affordable rent programme, which will see new homes funded largely by private debt supported by rents set at up to 80% of market levels.

With government grant covering on average just 13% of costs, the G15 has cautioned that the model is “inherently risky”.

It has also warned that the new market pegged social rents could cause acute affordability issues for low-income working families in the capital.

Keith Exford, chair of the G15 and chief executive of national affordable housing provider Affinity Sutton, said: “G15 associations are now in negotiation over contract terms and subject to reaching agreement on a number of important detailed points, we have shown we are willing to put our balance sheets on the line to help provide the housing so desperately needed by Londoners.

“But as independent businesses with a strong sense of social responsibility we remain concerned about the inherent risks of the Government’s new affordable rent programme and the impact it could have on low income working families.”

Exford added that ministers were aware of these concerns and that the G15 was committed to working with Government to find solutions.

    G15 London housing associations

  • A2 Dominion Group
  • Affinity Sutton Amicus
  • Horizon Group
  • Catalyst Housing Group
  • Circle Anglia
  • East Thames Group
  • Family Mosaic
  • Genesis Group
  • Metropolitan Housing Trust
  • Notting Hill Housing
  • Network Housing Group
  • Peabody
  • Southern Housing Group
  • The Hyde Group
  • The L&Q Group

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