Boris attacked for 'premature' pledge

Boris Johnson yesterday unveiled plans to invest £135 million of Homes and Communities Agency money to improve the availability of affordable housing in the capital.

But the Communities and Local Government department said it was ‘disappointed’ Mr Johnson had ‘prematurely’ announced the proposals without getting government approval for the funding.

A spokesman said: ‘It is vital that we ensure any new schemes offer a good deal for London and the taxpayer and we have asked the Homes and Communities Agency to look further at the detail of this proposal so they can quickly assess whether it should go ahead.’

The proposals were put forward by the HCA’s London Board, which is chaired by Mr Johnson.

Under the plans £93 million would be channeled to developers or housing associations working on five large-scale regeneration schemes that have been stalled as a result of the slowdown in the housing market.

This would create 1,500 homes, with the potential for a further 6,000 in the longer term, more than half of which would be affordable.

A further £42 million is going to housing association London & Quadrant to help it set up a scheme that allows potential home buyers to rent homes at a discounted rate while they save to buy a stake in the property.

Around 500 homes would initially be included in the scheme, and a further 800 properties would be brought forward for affordable rent on developments that have been delayed by problems with the for sale element of the build.

Mr Johnson said L&Q’s Uptoyou scheme is the first example of the type of products he would like to see under his First Steps initiative, which seeks to help first-time buyers enter the housing market.

Read what blogger Jules Birch thinks of the row

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