In an exclusive interview with Estates Gazette Labour mayoral candidate David Lammy spoke of the need for the government to become directly involved in housebuilding.
“The state has to be an actor,” he said, which is why he has proposed setting up a Homes for London agency that will raise money at the bond market.
Lammy pointed to the success that housing associations have had in raising money from the bond market as proof that London is a “special beast that is attractive to markets”. He believes the agency could raise £10bn.
Housing associations have become active bond issuers over the past five years as they have sought to diversify their funding sources in the face of government cut-backs. The issuance has been met with strong demand from buyers seeking low-risk products that offer steady returns.
Under the government guaranteed aggregator Affordable Housing Finance, several housing associations have now priced bonds at record lows for public instruments close to that of UK government debt.
• Click here to read this week’s full interview with the mayoral candidate
