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Pension funds urged to help capital build homes

Mayor of London Boris Johnson wants pension funds to finance house building in the capital.

Visiting the offices of the Coreco Group to discuss apprenticeships Johnson promised to host a round table on encouraging institutional investors into property.

He also outlined plans to release more than 500 hectares of public land for development in a plan to get London building homes.

Johnson says: “We have to build more homes in London and we need pension funds to help us finance it. They are sitting on huge assets, they are British pension funds and they will get a good long-term yield so they should be investing in it.

“We are having a big round table at City Hall and I want them to explain the difficulties. I think they are missing an opportunity.”

Johnson also pledged to expand First Steps, a shared equity scheme run by the Homes and Communities Agency with housing providers and the Greater London Authority. 

It allows first-time buyers to buy a share of their home in either private or social housing.

Johnson says: “First Steps has helped 25,000 first-time buyers get a share of the value of their property.

“They haven’t been able to buy the whole house necessarily but they have been able to take a share. I believe that if people want a share in their own home then that is a good thing and we should try to encourage it. The scheme is going to be expanded and encouraged.”

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