Housing Minister John Healey has published the Government's response to the Mayor of London's plans for affordable housing in the Capital.

In a letter to the Mayor sent last month, Mr Healey highlights the particular importance of providing affordable housing in London, both in ensuring its long-term economic success and in meeting the needs and aspirations of ordinary Londoners.

Under powers granted in the 2007 GLA Act, Ministers can exercise their power to direct the Mayor to change his housing strategy if any part is in conflict with national housing policy.

In his letter, Mr Healey explains that the Government has decided not to use these powers - both in recognition of the Mayor's electoral mandate, and because a number of key policies contained in the London Housing Strategy which are of concern to Government will be taken forward by the London Plan, which will be subject to scrutiny through Examination in Public later this year.


However, Mr Healey warns that the housing strategy published today will not sufficiently address the Capital's needs, and outlines areas of particular concern, including:

• Plans to provide only around 13,200 affordable homes a year
• Plans to move away from the strategic target that 50 per cent of new homes in London should be affordable to a London-wide numeric target - Mr Healey argues in his letter that this could make it harder for the Mayor to use his planning powers to ensure the need for affordable homes is met across the city
• Plans to reduce the number of new social rented homes provided by councils and housing associations by an equivalent 2,755 homes a year compared to current plans
• Plans to increase the annual household income limit for families to qualify for support to buy a home through the Government's Homebuy programme from £60,000 to £74,000.

Mr Healey said: "The provision of enough good quality affordable homes is essential to London's economic future, and meeting the needs and aspirations of Londoners.

"That's why since June, I have approved nearly £1.4 billion for affordable homes to councils and housing associations across the Capital. And with too many families on ordinary incomes unable to buy a home, we are targeting our help through the Homebuy programme to those who would otherwise struggle most to get a start in the housing market."

(CD/GK)