Photographer: Chris Ratcliffe/Bloomberg

London Developer Plans $230 a Week Homes to Tempt Tech Workers

  • Hackney tech and creative industry workers would rent homes
  • Developer also plans 140 other homes, office space in tower

A London developer is planning a 30-story tower that will include 50 low-cost homes for young people working in the technology and creative industries.

The apartments at 225 City Road -- near the so-called Silicon Roundabout technology hub -- would be priced as low as 150 pounds ($230) a week, compared with an average of 370 pounds for a one-bed home in the neighborhood, according to broker Foxtons Group Plc. Plans for the tower, including a total of 190 homes and workspace targeted at technology companies, will be discussed by Hackney borough council Wednesday night.

“The development seeks to deliver a range of managed and serviced homes specifically for young workers in Hackney,” according to a filing by the council, which said the homes would be targeted at 18- to 35-year-olds. “Discussions are ongoing around whether the principle of providing these units in lieu of traditional affordable housing can be considered acceptable.”

High rents and a shortage of homes from London to San Francisco are deterring computer science graduates and app developers from moving to global technology hubs. The cost of leasing a home is limiting the U.K. capital’s competitiveness and costing the city 2.7 billion pounds a year in consumer spending, according to a report on Monday by lobby group London First.

Workers would be allowed to stay in the 225 City Road homes for as long as two years if the project is approved, according to the filing. The plot is owned by 225 City Road Development Co. and is currently used as a parking lot.

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