London's housing crisis is set to receive a major boost as City Hall launches a new £100 million investment in the Silvertown Partnership regeneration scheme in the Royal Docks. The ambitious project aims to deliver 7,000 new homes by 2028, with the Greater London Authority (GLA) taking a more active role in funding and developing projects.
A cornerstone of this new approach is a £100 million investment in Silvertown, which will see City Hall take a leading role in site preparation and infrastructure development. The GLA has identified the need to unlock stalled sites like Silvertown, where private sector developers have struggled to make progress due to regulatory delays and high construction costs.
The new model is backed by £2 billion in government funding, comprising both grant funding and low-interest loans. City Hall officials say this approach draws inspiration from international examples, such as Singapore's state-led housing models. Mayor Sadiq Khan believes that this direct investment will increase the overall housing supply, accelerate construction timelines, and deliver much-needed affordable homes throughout London.
The move comes as policymakers continue to grapple with the ongoing housing market challenges. Recent data shows average UK asking prices increased by 0.8% in May, but London's market remains distinct, with average property prices often significantly higher than the national average. Mortgage rates remain elevated compared to pre-2022 levels, impacting affordability for many.
The City Hall initiative is intended to tackle the 'perfect storm' of factors affecting housebuilding, including high interest rates and rising construction costs. By taking a more hands-on role, Mayor Khan aims to accelerate the delivery of homes, particularly affordable options, to address London's persistent housing shortage.