Mayor of London Boris Johnson has announced a £77 million regeneration budget, which will help support builders and commercial property investors.
He said the funding was “crucial” to the industry if it was to kick start the development of its worst estates.
“It is essential that schemes to regenerate and renew the most deprived parts of our city go ahead despite the credit crunch, and this funding will play a crucial role in making this happen,” he commented.
An additional £55 million will be invested to reduce homelessness and renovate social rented homes, Property Week has reported.
The money will come from the Homes and Communities Agency’s (HCA) London budget, set to help the capital and the Mayor’s housing targets.
“Through our London team we look forward to working in close co-operation with local authorities, partners and members of the community to help bring about significant change,” said Sir Bob Kerslake, HCA chief executive.
The announcement is good news for the building sector, which has seen several projects mothballed until the economy recovers.