Mayor of London Boris Johnson said he will provide £77m of regeneration funding over the next three years for some of London’s most run down housing estates.

The funds will be used to kick-start programmes of estate and area regeneration that are ‘ready to go but have stalled because of the credit crunch’. Johnson said the funding will provide ‘crucial support to the building industry during the economic downturn and lead to huge improvements for Londoners living in some of the country’s poorest communities’.

A further £55m will also be invested to reduce homelessness, provide larger family homes and to maintain and improve social rented homes.

The funding is part of the mayor’s London Housing Strategy which aims to deliver new affordable homes, and provide more sustainable routes to home ownership. It comes from the Homes and Communities Agency's £5bn London housing budget that is being invested to deliver the Mayor’s housing priorities over the next three years.

Johnson, speaking at the London Housing Federation Development Conference in London today, said. ‘With so many run-down estates across the capital and so many Londoners living in overcrowded and poor quality housing, I am determined to ensure this money really changes lives and transforms the communities in which it is invested.

‘It is essential that schemes to regenerate and renew the most deprived parts of our city go ahead despite the credit crunch, and this funding will play a crucial role in making this happen.'

Sir Bob Kerslake, chief executive at the Homes and Communities Agency, said: ‘We are delighted to be part of the delivery of such a key investment programme alongside the Mayor. Through our London team we look forward to working in close co-operation with local authorities, partners and members of the community to help bring about significant change.’