The details of London mayor Sadiq Khan’s controversial 50% affordable housing target across Transport for London development sites were revealed this week.
Khan’s ambitious plans to deliver affordable homes on public land have come under criticism from developers on TfL’s procurement panel, which claimed they would struggle to build them out.
The plan will also cause a shortfall in TfL’s £1.1bn revenue target.
But this week Khan’s deputy mayor for housing, James Murray, reaffirmed that the target would vary on a site-by-site basis but insisted that 50% of the overall homes must be “genuinely affordable”. This was defined as either homes for social rent, London Living Rent or shared ownership.
Johnny Caddick, director of Caddick Group and Moda Living, which are not part of the framework, said that the definition of “genuinely affordable” would put off institutional PRS developers from developing on public sector sites because it would dilute the brand and confuse the customer.
He said: “What they might find from an insistence on 50% affordable is it will become more towards social housing rather than what we refer to in terms of high-quality amenity, high-quality management PRS.”
James Barton, a partner in Knight Frank’s City & Eastresidential development team, said the Greater London Authority would need to be flexible in terms of its disposal method to ensure the sites remained viable.
Joint ventures, land payments made when units are sold and flexibility around design and planning stipulations could all help the schemes become viable, he said.
The additional details on the affordable quota came as TfL released a further two sites from the proposed 75 plots it will deliver for development by 2025.
Landmark Court, SE3, which is close to Borough Market and London Bridge station, has the potential to unlock more than 269,098 sq ft of development. The mayor’s office said the site had potential for mixed-use development, including more than 100 homes, of which at least 35% will be affordable.
Fenwick South in Lambeth, SW9, includes a community centre and 55 new homes, all of which will be social housing.
The next site is likely to be brought forward in January, with further sites released every other month.
Deloitte is advising TfL on its land disposals.
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