The mayor of London, Sadiq Khan, has launched a new housing delivery arm for City Hall, signalling a more direct role for the Greater London Authority in funding and developing housing projects across the capital.

As part of the initiative, the GLA will invest £100m in the Silvertown Partnership, a major regeneration scheme in the Royal Docks that is expected to deliver around 7,000 homes. Approximately 1,000 homes are due to be under construction by 2028.

The move represents a shift in City Hall’s approach to housing delivery, with the Mayor seeking to take a more active role in bringing forward development sites rather than relying solely on private sector developers and housing associations. The Silvertown project is the first site to be backed through the new City Hall Developer programme.

The initiative is supported by nearly £2bn of government funding, including grant funding and low-interest loans, and is intended to help unlock sites that have struggled to progress through traditional development routes.

City Hall said the model draws on international examples where public authorities play a larger role in housing delivery and land development. The Mayor believes a more interventionist approach will help increase housing supply, accelerate construction and support the delivery of affordable homes across London.

The announcement was made during Khan’s trade mission to Singapore and Japan, where he is seeking to attract further investment into London housing and infrastructure projects.

Khan, said: “I am delighted to be launching our groundbreaking ‘Singapore-style’ housing development arm for the capital today.

“I’m proud to be investing £100m – one of the largest investments made by any Mayor of London  – to help build and deliver thousands of new, high-quality and affordable homes at Silvertown.

“This is a new era for housebuilding in London, with City Hall investing directly in new homes, unblocking stalled sites and speeding up development.

“It has been fascinating to visit the Pinnacle housing development here in Singapore and see at first hand the impact of a state-led housing model. By becoming part of the Silvertown Partnership, we can have a similar impact in the Royal Docks, where we plan to deliver 7,000 new homes.

“It builds on our record investment of nearly £12 billion through my Affordable Homes Programme to deliver social and affordable housing across London and our package of pro-housing emergency measures with government to turbo-boost the delivery of new homes in the capital.

“However, housebuilding continues to be impacted by a perfect storm due to the disastrous legacy of the previous government, high interest rates, the rising cost of construction materials, the impact of the pandemic and Brexit and Building Safety Regulator delays. That is why I will continue to make tackling our housing crisis a top priority as part of my ongoing work to build a better and fairer London for all.”

Ed Mayes, executive director of development for the Silvertown Partnership, commented: “The agreement is an important step forward for Silvertown and reflects the strength of our new partnership with the Mayor of London. This investment provides the certainty needed to unlock a complex site that has remained dormant for decades, allowing us to accelerate new homes, including affordable housing, alongside a vibrant new town centre for the Royal Docks.

“Over the past five years, the sector has faced exceptional pressures. In this context, coordinated public sector investment is a meaningful intervention that enables delivery where the market alone cannot. With this support in place, Silvertown can continue to make progress and realise its potential as a thriving new neighbourhood for east London.”

Silvertown is one of the Royal Docks most significant regeneration sites, having laid dormant for more than 40 years eluding the attempts of successive mayors and governments to regenerate it.

Its transformation is already advancing at pace as part of the Mayor’s vision for the site to become a vibrant new town centre for the Royal Docks. A revised masterplan for the project was signed off by Newham Council in December to deliver 7,000 homes, 1,800 of which will be affordable.

The first phase of development is delivering 1,032 homes, with more than half of those affordable, and The Guinness Partnership welcomed the first residents on site earlier this year.

The 60 acre site is owned by GLA Land and Property and work is already underway to deliver a total of 7million square feet of residential, commercial and public space. The site also includes the east London landmark, Millennium Mills, best known in recent years for its appearance in film and TV shows.

More broadly, the Mayor plans to build more than 36,000 new homes and create 55,000 new jobs across the Royal Docks – as part of his vision to transform the area into a thriving, new waterfront district, which includes new homes on the water and the capital’s first large scale floating park and lido.

Mayor of Newham, Forhad Hussain, said: “Having City Hall as part of the Silvertown Partnership is a gamechanger for Newham and our ambitious long-term plans for the Royal Docks.

“It means thousands of new homes over the next few years and crucially more affordable homes in the places where they are needed most.

“I welcome the Mayor of London’s ambitions for both Silvertown and the wider Royal Docks. The new approach by City Hall will give Silvertown the shot in the arm it needs to reach its full potential as East London’s new waterfront neighbourhood, while protecting the existing communities who have called the area home for many years.”

Catriona Simons, group chief executive at The Guinness Partnership, added: “The Guinness Partnership welcomes the Mayor’s announcement. We are delighted to be delivering 734 much needed affordable, energy efficient homes in Newham. We have already welcomed 47 residents into the first 106 newly completed affordable homes, which will be part of this vibrant new neighbourhood, in the heart of East London. Along with partners and contractor Lendlease, we look forward to being part of Silvertown’s exciting future.”