Boris Johnson plans to object to Labour-led council鈥檚 decision to reject affordable homes programme

Boris Johnson

Boris Johnson

Boris Johnson is set to intervene over Islington council鈥檚 move to reject the government鈥檚 拢1.8bn affordable homes programme, in a move likely to spark a furious row between City Hall and Labour boroughs.

The move comes after Labour-led Islington council last week rubber-stamped its proposal to reject the government鈥檚 affordable rent policy, which gives a limited grant to developers for homes which can be let at up to 80% of the market rent.

Islington maintains that the affordable rent strategy - delivered through the 拢1.8bn affordable homes programme - will not lead to the development of 鈥渢ruly affordable homes鈥 and has instead pledged 拢2.5m of its own money for housing associations to build homes for social rent, which is set at around 30-35% of market rates.

Under its plan, which could yet be followed by other Labour boroughs in the capital, the council says housing associations will build 61 homes for social rent across the borough over the next two years.

However, sources at City Hall have told 黑洞社区 that the mayor of London will formally object to Islington鈥檚 policy when it is put to independent examination by the Planning Inspectorate on the grounds that it is out of step with both the London Plan and national policy.

鈥淲e fully expect the planning inspectors to strike this down,鈥 one City Hall insider said.

Last week a report by the National Audit Office on the affordable homes programme warned that moves within London by some councils to oppose the affordable rent strategy could impact on the viability of schemes as developers would be unable to charge.

James Murray, Islington council鈥檚 executive member for housing, insisted that borough plans did not need to conform 鈥渋n every aspect鈥 with the London plan. He said that under the policy more houses would be built in the borough and that meant it was in 鈥済eneral conformity with the London plan鈥.

He said the council was in discussions with the mayor鈥檚 office about the policy and he hoped a solution could be reached.

A spokesperson for the mayor said: 鈥淭he mayor will look at Islington鈥檚 proposals and make his views known at the examination鈥.

The news emerged as Homes and Communities Agency chief executive Pat Ritchie confirmed the agency will accelerate the 拢1.8bn affordable housing programme.

the move to bring forward housing spend and this week Ritchie told a meeting of the Public Accounts Committee that 6,500 homes would be brought forward from 2014-15 into earlier years of the programme.