Southwark Council has been allocated £5.275 million from London mayor Boris Johnson's "building the pipeline" fund to help pay for the first two phases of its large-scale home-building programme.
The authority, which has committed to building 11,000 council homes in the borough over the next 30 years, said the award would be combined with “in lieu payments” for affordable housing connected with the boom in private-sector development in the borough.
Councillor Fiona Colley, Southwark’s regeneration lead, said she was delighted to get confirmation of the mayoral allocation.
“It will enable us to provide more genuinely affordable homes for those desperately seeking somewhere to live in the borough – at around 40 per cent of the local market rent," she said.
Richard Blakeway, Johnson’s deputy mayor for housing, land and property, said the funding award to Southwark was part of billions of pounds worth of investment aimed at doubling the number of homes constructed in the capital.
“In Southwark this means funds to build many more good quality, low cost, family homes, which in turn will create hundreds more jobs for local people,” he said.
Southwark Council has bought Courage Yard on Shad Thames, near Tower Bridge, which it will redevelop to generate income for frontline services.