Mayor bids to aid London real estate market

November 24, 2008 by OPPE News

London could be in for a real estate market boost after the city’s mayor announced a £5 billion windfall for housing.

Boris Johnson unveiled the Housing Strategy, which is geared to boost building in London during the economic slowdown.

Measures include support for the construction industry to get more affordable homes for sale onto the market.

The Greater London Authority also said the strategy would see cash used to kick-start some of London’s stalled developments.

Mr Johnson said:

“The strategy focuses not only on the issues facing the housing market in these difficult times but the historic problems of affordability, homelessness and overcrowding.

“These plans aim to put London on a strong footing for the eventual upturn in the housing market.”

Initiatives are also designed to “bring forward” public sector land for new housing development.

Property experts welcomed the moves with consultants Knight Frank saying the new scheme represents “the first serious attempts” by the public sector to kick-start housing development.

Mayor Johnson’s plans also include raising the household income limit to £72,000 for low cost ownership schemes.

A three-month consultation on the plans will run from spring next year, with a final plan published in late 2009.