Property professionals are split over the impact the Good Growth Fund will have on development and investment in London.

The £70m fund – announced by Sadiq Khan last month – will support growth and community development in London.

Liam Brooke, co-founder of Lendy, felt that any investment that looked to help regeneration projects across the capital was welcome news.

“It is especially important that smaller developers are encouraged to start projects in London.

“They have a vital role to play in easing the housing crisis, but have over the recent years been unable to get the capital needed from traditional lenders; the Good Growth Fund will help these developers get their projects off the ground and drive regeneration.”

Rico Wojtulewicz, policy adviser for the House Builders Federation, stated: “London is already an appealing place to invest, but the access point for development has been squeezed for those unable to take increased financial risks.

“The Good Growth Fund will unlock many opportunities for small- and medium-sized businesses and, hopefully, inspire a few more to spring from our communities.”

However, Liam added: “While the fund will go some way in supporting the city’s small developers, more still needs to be done to ensure that property developers – not just in London, but across the UK – have access to funding.”

Michael Dean, principal at Avamore Capital, felt the fund was a paltry sum that would have virtually no impact on the development of the remaining parts of the capital that need regeneration.

“This is the equivalent of trying to stop an oil tanker with a potato gun.

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“The private sector invests 100 [times] that annually in the capital alone.

“Compare this fund to the amounts provided by s106 contributions and CIL by private developers and housing associations.

“That amount of money could be far better spent in regional locations which are in need of investment, where land is cheap and the private sector has overlooked.”

Sam Howard, COO of Regentsmead, felt that any coordinated and strategic funding directed to parts of London was welcome, but only as long as it was exactly that.

“Broadly speaking, you need the three pillars of commercial, housing and cultural investment to spur a regeneration.”

Sam pointed to Croydon, where Regentsmead had seen business investment spearheaded by Westfield, which had then been matched by housing investment from councils and property finance lenders.

“There has been a clear strategy from local government to make Croydon open for business.

“This has created a momentum leading to a flood of investment.

“Can the Good Growth Fund do a similar thing?

“Only time will tell.

“My concern is, does it have the business, housing and local government buy in?”

Rico added: “Any funding which inspires inclusive innovation is welcomed, but with no advice line, the Good Growth Fund may struggle to engage the wider London community.

“For good growth in places, the House Builders Association hopes mayor Khan can also find some funding for his borough’s planning departments.”