City Hall has launched a massive £1.5 billion intervention to rescue London’s stalled housing market, deploying ultra-low interest loans to replicate Vienna’s gold-standard social housing model, City Hall has announced.
London will benefit from the government-backed loans to boost lagging housebuilding in the capital. The funding – which represents 60 per cent of the £2.5 billion national scheme – means loans will be offered to housing associations at an interest rate of 0.1 per cent over 25 years to encourage mass development. It is a scheme which ministers and the Mayor of London are hoping will kickstart the delivery of both market and affordable housing, as well as unlocking sites currently stalled by developers.
