Plans revealed for £200 million tower block said to alleviate housing crisis in the capital

In a recent statement, Mayor of London, Boris Johnson, has announced the housing shortage within the capital is set to be greatly alleviated by a new rental development programme.

Designed by Rogers Stirk Harbour & Partners, the 44 storey tower block will be built on the former site of the London Park Hotel within Newington Butts, an area near to the Elephant & Castle road junction.

The commencement date for the £200 million housing development is scheduled to be in January 2015 and is expected to be completed by 2018.

The site is currently owned by the Greater London Authority (GLA), who are working in partnership with the Mayor to create the 457 homes. The project was originally going to be funded by Essential Living, who later withdrew. Real estate developers, Mace, and Canadian residential and hospitality owners, Realstar will work in conjunction to build the tower block, which will also include a theatre space and cafe. Mace has also reportedly received legal advice from a team at law firm, DLA Piper.

278 of the properties are said to be set aside for private rent, and 179 will be used for reduced price housing schemes. Social landlord, Peabody, is also thought to be involved in the project.

Johnson says the booming population in London means there needs to be double the number of homes currently being built. Resolutions for such an extensive issue require new thinking and schemes such as this to provide a greater scope of properties for Londoners to choose from.

Chief Operating Officer of Mace Investment, David Grover, comments that since starting the project, the company has been working towards strategies that will deliver the housing plans effectively.

Vice Chairman of Realstar Group International, Ryan Prince, thinks the outlook for renting in London is much more positive and this development is part of a wider plan to regenerate the Elephant & Castle area, which is a result of great demand.

Two further GLA-owned sites are set to be used by the private rental sector. Silvertown Way in Canning Town and Pontoon Dock in Newham are apparently in the running to receive approval for further housing developments.

Today's Conveyancer