Pickles ploughs £3bn into London's housing as Mayor takes charge

Published by Ross Macmillan for 24dash.com in Housing and also in Communities, Local Government

Communities secretary Eric Pickles has announced £3 billion of funding for housing in London, ahead of plans to devolve the Homes and Communities Agency's (HCA) functions in the capital to the Greater London Authority (GLA). 

The money forms part of a transition of power detailed in the Localism Act - which kicks in from April - and will see the London Mayor accountable for the capital's affordable housing programmes, including key development sites like the Greenwich Peninsula, and east London's Olympic legacy.

The Act devolves the activities of the HCA in London to the GLA, including the management of London's affordable housing programmes.

Under the terms, the GLA will become responsible for all of the HCA's land and property assets in London, with the Department for Communities and Local Government continuing to receive a 50 per cent share of receipts from Greenwich Peninsula (the HCA's largest asset) reflecting the significant national investment in this site over the last 15 years.

It will also enable the Mayor of London to establish a Mayoral Development Corporation to oversee the long term development of the Olympic Park and surrounding area.

The £3 billion funding supports the Mayor's four year commitment to build 55,000 affordable homes by March 2015, and to bring 45,000 existing social homes up to standard across London, as well as supporting the Mayor's plans for the Olympic Park.

The current Olympic land and debt deal, first agreed in March 2010, will also be replaced by new receipt sharing arrangements for the Olympic Park to reflect the devolution of Olympic legacy to the Mayor and to "protect the interests of the taxpayer".

Mr Pickles said: "This settlement hands real power to London allowing Londoners to manage their own affairs. It goes hand in hand with the new localism powers and spending freedoms we are handing councils around the country so they can be as efficient and effective as possible with public funds.

"The lasting legacy from the Olympics will showcase the regeneration and house building achievements that ensures London remains a truly great city."

Mayor of London, Boris Johnson said: "This is a landmark agreement that sees responsibility and accountability for housing and regeneration resting squarely with London. We are now in a great position to drive forward vital investment that will deliver more affordable homes across the city, secure a lasting legacy in the Olympic Park and create thousands of new jobs. I will do all I can to grasp the fantastic opportunities this settlement provides and ensure that London becomes an even better place to live, work and invest in."