The Mayor of London has launched a ‘Singapore-style’ housing development arm for the capital, with the GLA investing £100million to become part of the Silvertown Partnership.
The partnership will deliver 7,000 new homes on a site in the Royal Docks, East London, with around 1,000 homes expected to be under construction by 2028.
The announcement, which represents one of the largest investments made by any Mayor of London into a single development site, was made during the Mayor’s trade mission to Singapore and Japan, where he is promoting London as a leading global destination for investment.
This marks a significant step towards City Hall becoming an active developer, intervening in London’s land market to maximise affordable housing delivery and accelerate the speed of building.
The approach forms part of the Mayor’s new City Hall Developer initiative, which is being supported by nearly £2billion from the government in grant and low-interest loans at 0.1% for the first time, helping housing associations boost the delivery of much-needed new homes. City Hall says that Silvertown development is the first in a major pipeline of sites that the Mayor plans to unlock through this initiative.
The model draws on the way many new homes are built in Singapore, with the state responsible for building around 80% of homes and owning the vast majority of land. City Hall says that this approach has enabled sustained, large-scale delivery of housing and integrated urban development supported by long-term public investment.
The Mayor of London, Sadiq Khan, said: “I am delighted to be launching our groundbreaking ‘Singapore-style’ housing development arm for the capital today.”
“I’m proud to be investing £100million, one of the largest investments made by any Mayor of London, to help build and deliver thousands of new, high-quality and affordable homes at Silvertown.”
“This is a new era for housebuilding in London, with City Hall investing directly in new homes, unblocking stalled sites and speeding up development.”
“It has been fascinating to visit the Pinnacle housing development here in Singapore and see at first hand the impact of a state-led housing model. By becoming part of the Silvertown Partnership, we can have a similar impact in the Royal Docks, where we plan to deliver 7,000 new homes.”
“It builds on our record investment of nearly £12billion through my Affordable Homes Programme to deliver social and affordable housing across London and our package of pro-housing emergency measures with the government to turbo-boost the delivery of new homes in the capital.”
“However, housebuilding continues to be impacted by a perfect storm due to the disastrous legacy of the previous government, high interest rates, the rising cost of construction materials, the impact of the pandemic and Brexit and Building Safety Regulator delays. That is why I will continue to make tackling our housing crisis a top priority as part of my ongoing work to build a better and fairer London for all.”
Ed Mayes, executive director of development for the Silvertown Partnership, said: “Today’s agreement is an important step forward for Silvertown and reflects the strength of our new partnership with the Mayor of London. This investment provides the certainty needed to unlock a complex site that has remained dormant for decades, allowing us to accelerate new homes, including affordable housing, alongside a vibrant new town centre for the Royal Docks.”
“Over the past five years, the sector has faced exceptional pressures. In this context, coordinated public sector investment is a meaningful intervention that enables delivery where the market alone cannot. With this support in place, Silvertown can continue to make progress and realise its potential as a thriving new neighbourhood for east London.”
The Silvertown site at the Royal Docks has laid dormant for over 40 years, and Newham Council signed off a revised masterplan for the project in December to deliver 7,000 homes, 1,800 of which will be affordable. The first phase of development is delivering 1,032 homes, with more than half of those affordable, and The Guinness Partnership welcomed the first residents on site earlier this year.
The 60-acre site is owned by GLA Land and Property and work is already underway to deliver a total of 7million square feet of residential, commercial and public space.
