The mayor of London’s investment into Pocket Living will see work begin on at least 1,059 new homes by March 2021, with a third set to be built off-site in a factory and then dropped into place.
The homes will be for first-time buyers who already live in the borough and are typically one- or two-bed flats sold for at least 20% less than market sales with the deal also ensuring all homes remain affordable for the lifetime of the building.
Pocket Living will pay back the funding by the end of the next decade and will use the £25m to help finance ongoing site purchases for development and allow it to increase its rate of delivery of high-density flats on small brownfield sites.
Mr Khan believes off-site construction is another valuable tool which should be utilised to tackle London’s housing crisis.
“For decades, we have simply not built enough new and affordable homes in the capital, meaning that for too many Londoners the dream of buying their own home is getting further and further out of reach,” said the mayor.
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“That is why I am working with Pocket Living to build more than a thousand homes for first-time buyers, using the latest off-site construction techniques to provide attractive and affordable homes as quickly as possible.”
Mr Khan added that he would continue to use his £3.15bn of funding to invest in innovative schemes such as this to build genuinely affordable homes.
Marc Vlessing, CEO of Pocket Living, said it was its mission to open up the housing market to hard-working Londoners.
“City Hall's support for Pocket is yet another demonstration of the mayor of London’s commitment to tackling the capital's housing shortage and increasing the range of affordable housing options.
“We are proud to receive the mayor’s backing for Pocket Living’s award-winning approach to design and the use of modern methods of construction to help those priced-out and not eligible for social housing to get on to the property ladder.”
Mr Khan’s investment will be used alongside £33.5m of funding from the Homes and Communities Agency (HCA) to build homes on the first set of sites to come forward.
“This deal is an important contribution to much-needed affordable housing in London,” said Nick Walkley, chief executive of the HCA.
“By lending £33.5m from the government's Home Building Fund, the Homes and Communities Agency is helping to unlock the construction of new homes, giving first-time buyers in London a real chance to get their foot on the housing ladder.”