Transport For London’s (TfL) new property company have the potential to deliver 46,000 homes should it receive government funding, the mayor’s transport arm has said. Plans to deliver thousands of homes will be delivered through a new ring-fenced commercial property company.
Sadiq Khan, Mayor of London, has guaranteed that 50% of all homes will be through affordable housing.
Tfl believe they can deliver 13,278 homes with commercial debt of £400 million, allowing 8,000 homes to be started by March 2024, 11,000 by March 2025 and 145 acres across more than 50 sites would be delivered. Should they receive enough grant funding, pushing their net capital funding to £2bn, it will be able to deliver 46,000 homes through its “Housing Growth’ model.
Should funding not be given, TfL will operate under its restricted funding regime, which means they will only be able to deliver a further 10,750 homes. At present they have more than 6,300 homes with planning permission, 1,500 awaiting decision and another 1,200 due to be submitted in the next 12 months.
“This housing growth plan in particular has the ability to accelerate housing delivery and generate a long-term return to TfL, alongside substantial wider economic benefits”, the TfL report said. It added that discussion with the government about support for the first schemes is ongoing.
Graeme Craig, director of commercial development at TfL said: “As part of our long-term strategy and building on the successful work that has already taken place in recent years, we are now looking to take forward development activity in a commercial property company that is wholly owned by TfL.
“This will provide sustainable revenue to reinvest into public transport while delivering thousands of new homes for the capital, with 50 per cent affordable housing across the current portfolio.”