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A flagship Conservative council in London is to insist that six in every 10 new affordable homes built in the borough are reserved for middle-income families.
Westminster City Council said that other London councils’ focus on social housing “leaves most average earners unable to find a place to live in the city”.
It said that 25% of homes in Westminster are already social housing, while just 1.5% are intermediate – meaning up to 80% of market rents.
Shifting priority to intermediate housing for households earning between £30,000 and £90,000 a year “will ensure Westminster provides homes for a cross section of the community, not simply the richest and poorest”, it added.
Richard Beddoe, cabinet member for planning and public realm at Westminster City Council, said: “We’re proud that one in four of our homes are social housing but as a city for all, we’re determined to create homes for our residents, especially average earners and middle-income families.
“We’ve laid down the gauntlet for developers by introducing less restrictive rules. Now they need to do their bit and provide the homes for the working families who keep our city moving.
“Providing social housing remains a priority but the lack of intermediate homes must be addressed.”
Westminster City Council was one of only two stock-owning London boroughs which did not bid for £1bn of council housebuilding grant offered by the Greater London Authority (GLA), citing concerns that rules attached to the money could delay its planned estate regeneration schemes.
The programme prioritised delivering homes at near social rent levels.
Westminster City Council’s new affordable housing policy forms a part its draft City Plan 2019-2040 which includes a target to oversee delivery of 1,495 new homes a year, with 35% affordable.
That is nearly 50% higher than the levels required by the GLA’s London Plan but in line with the target set by the government’s standard methodology for calculating housing need.
The local Labour Party said demanding that six in 10 new affordable homes are intermediate will reduce the number of homes built for social rent in the borough.
Geoff Barraclough, shadow cabinet member for planning and placemaking, said: “The new City Plan is yet another missed opportunity to fix the housing crisis in Westminster, and it does little to help the 2,640 families who woke up in temporary accommodation this morning.”