Feature: Gov't grant to kick-start mega London housing scheme after 10-year wait

A multi-million project to build 3,500 homes in the heart of London is to start within months following the award of a 300 million U.S. dollar government grant to the developers. It will be one of the biggest housing projects in inner London for many years.

The scheme, first conceived more than 10 years ago, will transform a large area of London's Canary Wharf, where residential properties already command average price tags of between 1.5 million dollars and 3 million dollars.

The new housing stock will include 607 affordable homes, as well as office blocks, shops, new parks and public squares.

Design of the scheme has included Herzog and de Meuron, the Swiss architects behind the extension to London's Tate Modern art gallery and the Beijing "Bird's Nest" Olympic stadium.

Britain's Communities Secretary Eric Pickles announced the government funding package to the Canary Wharf Group, saying the funding boost will now enable work to finally get started after being on the drawing board for more than 10 years.

Pickles said: "London's Docklands have been completely transformed in the last 20 years into an exciting place to live and work. This deal will ensure this continues long into the future with a development delivering thousands of homes as well as job opportunities."

He added: "Housebuilding is at the heart of the government's long-term economic plan, with starts at their highest since 2007 and 253,000 homes granted planning permission last year."

Under the deal the Canary Wharf Group will receive a 300 million dollar loan from the government to pay for the infrastructure needed to unlock the site to the east of the existing Canary Wharf estate.

The funding will also pay for a network of parks and public squares, as well as improved road and pedestrian access. The proposals have already won planning consent so work will be able to start within months.

Andy Rose, chief executive at the Government's Homes and Communities Agency, said: "The government contribution to this project will accelerate the infrastructure needed to boost this vital center for business activity by unlocking land to establish Canary Wharf as a residential location, building the homes that London needs to supply viable housing developments."

London Mayor Boris Johnson said the funding will help accelerate the regeneration of a derelict brownfield site into a brand new community for London.

The development area spans 455,000 square meters and as well as the new homes will include 177,000 square meters of lower-rise office buildings to accommodate the fast growing technology, media and telecoms sectors as well as financial and professional services firms, and high street shops. Endit