L&Q has signed a partnership with mayor of London Sadiq Khan that will see the housing association deliver 20,000 new homes across the capital.
The tie-up with L&Q is the first of its kind between City Hall and a housing association and will see more than £8bn invested to build the 20,000 homes, of which 60 per cent will be affordable.
The deal is the first agreement to be made under the mayor’s £3.15bn affordable housing deal secured from the government last November.
The £3.15bn will support the construction of 90,000 homes in the capital, with £400m of the fund going towards supporting projects under the L&Q partnership.
In addition to supporting the delivery of homes, elements of the £400m fund will also be put towards land purchases and infrastructure costs.
Mr Khan said the deal showed his willingness to work with housing associations that can build at scale and deliver 60 per cent affordable housing.
He said: “I welcome L&Q’s commitment and significant investment in building new and genuinely affordable homes for Londoners.
“This announcement today demonstrates real progress on the long road towards tackling London’s housing crisis.
“I urge other housing associations to work with us to get on and build the homes London needs.”
L&Q chief executive David Montague said: “Over the last five years L&Q has invested more than £2bn in new homes for London.
“Now, through this ground-breaking strategic partnership, we will build upon our existing pipeline and devote significant additional capacity into delivering even more new homes in the capital.
“Our aim is for 60 per cent of these homes to be genuinely affordable. We will also commit to major investment in construction skills and training.”