Khan calls for £5bn housing bailout

London mayor Sadiq Khan has called for a £5bn funding package to kick-start the capital’s recovery in the wake of the pandemic. Khan and the Covid-19 Housing Delivery Taskforce are calling for emergency investment to maintain construction, save jobs and boost development of new social homes. The taskforce comprises industry leaders in construction, housing associations and the public sector, including Helen Evans, chief executive of Network Homes and chair of the G15, and Darren Rodwell, London Council’s executive member for housing and planning. They are demanding a further £4.9bn a year available from 2023 to buy unsold private housing and convert homes into social and low-cost rented accommodation. Some £3.5bn would be dedicated to the “buyer of last resort” scheme, funding council and housing association acquisitions of unsold private housing at cost price, to be converted into social housing. At current levels this could deliver up to 9,200 homes between 2020 and 2022. A further £1.3bn would enable these groups to convert homes already planned for low-cost ownership into homes for social and low-cost rents. If fully funded, the group estimates this could deliver some 34,597 affordable homes. Khan said: “The government’s economic statement tomorrow is a chance for the chancellor to put building new homes at the heart of a plan to kick-start the recovery. “Ministers now have a unique opportunity to help address the issues of housing supply and affordability while also underpinning London’s economic recovery by supporting tens of thousands of jobs and training opportunities.” To send feedback, e-mail emma.rosser@egi.co.uk or tweet @EmmaARosser or @estatesgazette