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Inside Housing did a short question and answer session with mayor of London Sadiq Khan, joined by his deputy James Murray, as they visited some new council homes in Newham, east London
Above picture: Sadiq Khan (centre), flanked by deputy mayor James Murray (left) and mayor of Newham Rokhsana Fiaz (right), talk to residents
Housing associations want to convert homes built for market sale to affordable rent where they are struggling to sell them.
Will you provide grant for this purpose?
“The deputy mayor [James Murray] has been speaking to housing associations to give them the support that they need.
“One of the things we’ve been trying to do is lobby the government in relation to how the affordable housing works.
“The cross-subsidy model, we think, has broken – the idea that housing associations and others build market-value luxury housing and sell them off and use that to build more affordable housing – so we are doing two things: we are lobbying government and asking them to give more support, and we are talking to housing associations about what they need.”
So if a housing association has unsold homes and comes to you asking to flip those into affordable housing, would that be something that would be permitted under your programme?
[Mr Murray] “We are talking to housing associations about how they can convert some of their market sale homes into affordable because everyone knows the national picture is impacting the private sales market.
“Housing associations because of the low rates of grant are very dependent on that and we want to make sure housing associations keep building so that we get those affordable homes built and keep homebuilding going in London, and so talking to housing associations about what homes they can flip to affordable is a really important part of the offer.”
In 2017/18, you built 12,555 homes through your programmes – but only 22% for social rent. Given what you’ve said about the importance of social rent for London, is that too low?
“No, it’s a record. It’s more than the previous four years put together, so if I’m criticised for in one year building more than the previous four years put together I’m interested to know what you would regard as success.
“We have got to increase that, though, and so what we plan to do this year is to try and build even more social-rented homes, but the context is this: successive governments have failed to build enough social-rented homes.
“What we have done this year is reach a deal with councils that’s not been done for 10 years, which is to start building homes for social rent. But also we’re helping them build up their capacity. A lot of councils have lost the capacity within the council to start building homes for social rent.”
Central government’s rhetoric about your housing policy has become increasingly critical in recent weeks.
This morning, James Brokenshire, the housing secretary, said that your leasehold plans “show once again that the mayor really doesn’t understand the housing market”. Is your relationship with Mr Brokenshire in trouble?
“James Brokenshire is the Conservative secretary of state who I understand has got to have a pop at the Labour mayor at every opportunity he can, but we work closely together to try and address the housing crisis in London.
“What I think even James Brokenshire would recognise is that there are too many leaseholders unhappy with the way the system works and the portal we have set up provides clarity to leaseholders.
“What I would say to any Conservative secretary of state or politician is I can do the knock-about stuff – I can do that all day long – but once in a while we have to park that and address the needs of the constituents who elected us to parliament and City Hall.
“Actually, I’m confident that when James and I do put aside the party political stuff we do good business.”
You promised that over the course of your tenure you would see 50% of all homes built in London of affordable tenures. I appreciate it is a “marathon, not a sprint”, but do you know how long the marathon will take to run?
“The Draft London Plan is not even a London Plan yet so I’m astonished Inside Housing doesn’t know how long the process takes! But the number of affordable homes given planning permission, with a dodgy definition of affordable, when I took office was 13%.
“We have made it harder for ourselves by ditching that dodgy definition, which included homes of up to 80% of market rents, but notwithstanding that we have seen independent reports which show that the number of affordable homes given planning permission in 2018 was 37%.
“I want to see that increase, but without serious support from government we are not going to make the progress we need. That includes grant and the resources we are given, but it’s also the powers we have, particularly around land assembly.”
Listen to our podcast episode, Is Sadiq Khan delivering on housing?
Picture: Getty
Social rent: The amount of social rent a person pays depends on the location and size of the property, and is set according to a complex formula, but it is typically set at between 50% and 60% of market rent.
Affordable rent: Introduced by the coalition government in 2011, ‘affordable’ rent can be up to 80% of market rent, although many associations have been charging lower than this.
London Affordable Rent: A tenure introduced by Sadiq Khan that is lower than national affordable rent and based on target rent levels towards which social rents are gradually being raised. This makes it higher than average social rents in the capital, but in line with the rent that would likely be charged if a new social rent unit was built and set according to the same formula.
London Living Rent: A rental product aimed at middle-income Londoners introduced by Sadiq Khan, with rents set at one-third of average local earnings.
Target rent: A social rent level calculated by the government, which council and housing associations should use to move their social rents to over time.
Source: Greater London Authority