Tower Hamlets council announced last week that they would be using money from Right to Buy purchases to fund the building of new homes by housing associations. The aim being to start reducing the waiting list for council homes, which is currently over 21,000.
The scheme incentivises housing associations to build homes which are truly affordable, rather than the definition of affordable used by profit-making housing developers, a definition which doesn't seem to make sense to anyone else.
The £7m being put up by the council must be used to build at least 70 homes, and must also be no more than 30% of the total development costs. This means that even if the housing associations can only build flats for £100,000 each, then the residents of Tower Hamlets will still get an additional 163 homes, as well as the initial 70.
Clearly the people of Tower Hamlets are going to need many more homes than 233 to reduce the council house waiting list from 21,000, but we are glad to see that the Labour Council is starting to recognise the problem. As Liberal Democrats we do not think this plan goes far enough however, which is why we have a plan to build 200,000 homes across London including 50,000 more council homes by 2020. To find out more about that plan visit here.