The Mayor of London, Sadiq Khan has shown his support for social rent homes in the capital by helping housing association Peabody guarantee that 70% of the affordable homes on the former Holloway Prison site will be for social rent.
The scheme will deliver 60% of genuinely affordable homes, with more than 40% of the total homes on site now at social rent.
‘Social rent’ is set by a national formula and is the cheapest form of affordable housing. While restrictions set by central Government limit the ability of the Mayor to fund homes at social rent under the current affordable homes programme, the Mayor has indicated that securing the flexibility from Government to fund more homes at social rent will be a priority for the next affordable homes programme, which starts next year.
The Mayor backed the scheme with a £42m loan for Peabody housing association to help buy the former prison from the Ministry of Justice in March 2019, in addition, to grant funding through his affordable homes programme.
The first homes are expected to be started on the site in 2022 with the redevelopment completed by 2025.
The support comes in the context of record-breaking housing delivery in London. Across the capital, 17,256 affordable homes were started in the year ending March 31 2020 – exceeding the target of 17,000 and breaking the Mayor’s own affordable housing record, with more genuinely affordable homes being started last year than at any time since records began in 2002/3.
Tom Copley, Deputy Mayor for Housing commentted: “Londoners desperately need more high-quality homes available at social rent levels so I’m pleased that we’re able to work with our partners at Peabody and Islington to maximise the number of social rent homes on this development.
“This is a vote of confidence in this vital project that will deliver housing the people of Islington can be proud of.”
Leader of Islington Council, Richard Watts added: “The Holloway Prison site is one of enormous significance for Islington and it’s vital we use this a once-in-a-generation opportunity to deliver as many genuinely affordable homes on this large site as possible. We applaud the Mayor’s commitment to tackling London’s housing crisis and welcome the additional funding.”
Dick Mortimer, Executive Director for Development at Peabody commented: “Peabody bought the Holloway Prison site with a clear commitment to providing as many affordable homes as possible.
“This reflects our social purpose and we’re delighted to be able to propose a development that will deliver nearly 1,000 new homes and 42 per cent social rent with the ongoing support of the Mayor. The planning application is still to be submitted but we believe our scheme will result in a high-quality development that everyone can support.
“In addition, we will be delivering a ‘Women’s Building’ that recognises the site’s importance and historical connection to women.”