The Mayor of London, Boris Johnson, has selected preferred bidders for two sites, owned by the Greater London Authority (GLA), to fast track the creation of more than 1,200 new high quality homes including 480 homes for long-term private rent. The developments will use an innovative covenant to help relieve pressure on the capital’s housing market, accelerate development and raise standards of private renting.
Over the last decade the number of households privately renting has increased to around two million Londoners – about one in four – but the capital has few purpose-built rented schemes compared to the US or Europe. The GLA marketed two sites, Silvertown Way and Pontoon Dock, with the specific aim to deliver a significant proportion of private-rented homes. The requirement for top quality private rent, built alongside traditional private sale and affordable housing, will help to speed up the construction period, encourage long-term institutional investment into the residential market and improve the design, tenancy arrangements and management of the homes. The GLA requires both developers to hold the private-rent housing for at least ten years.