Ever since Bevan and Macmillan, governments have been measured by the number of new homes delivered.

Housing completions are not really the challenge; instead it is generating new housing starts. Public funding will always be the biggest contributor to delivering new affordable homes - as it should be; housing is arguably as important as health and education to delivering a better society. But with tight public finances, the banks reluctant to lend, and a damaged cross-subsidy model, every avenue must be explored.

The mayor of London Boris Johnson is looking at options following his investment summit earlier this month, with the offer of Greater London Authority-owned land to try new models. Calls for public land are familiar but today the pressures are different. There is far less land available in the downturn than expected. There is greater viability if upfront land costs are reduced. There is also a greater (recyclable) return to the public purse while the market is low by investing land as equity, so long as quality homes are delivered by a deadline.

GLA is not the only landowner. The government should also redouble efforts and match us hectare for hectare. Councils, too, have significant land holdings on smaller, more viable sites. For boroughs, the costs of releasing land, together with time and bureaucracy, may mean land is slow to come forward. That is why the London Development Agency is exploring a single vehicle, similar to a local housing company, through which boroughs can speed-up the release of land, reduce costs and generate financial benefits for the whole borough.

The mayor has also signalled that London boroughs could be given increased influence on the direction of housing investment in their area under delegated contracts - to be piloted with the Homes and Communities Agency next year - on the agreement that it stimulates more affordable housing. The process will require boroughs bringing their own land forward to help deliver affordable housing.

Ultimately, it is public land that may tip institutional investors into the residential market. From real estate investment trusts to the private rented sector initiative, the public sector has tried to attract pension funds and others to housing, but the institutions want land to underwrite the risk.

There will now be a review of the surplus land held by the GLA and its associated bodies.With its higher yields, investors are attracted to private rent in the capital and we will talk to them about our land holdings as well as exploring whether other tenures could be attractive investments for them.

There has been committed focus on kick-starting construction to help to deliver the mayor’s target of 50,000 affordable homes. It is right we start thinking now about the next 50,000 - and beyond.

Richard Blakeway is the GLA’s housing advisor to the mayor

Have your say

You must sign in to make a comment