Southern Housing to help solve £1bn Olympic Village funding woes

Housing association Southern Housing has stepped-in to help solve funding problems on the £1bn Olympic Village.

Southern is set to officially join the consortium providing affordable housing within the scheme.

The move will ease pressure on main developer Lend Lease which has been struggling to raise cash to fund its half of the project

An Olympic Delivery Authority spokesman said: "The Southern Housing Group has reached an in-principle decision with First Base and East Thames about joining the consortium for the provision of the affordable housing elements of the Olympic Village development. This is still subject to regulatory and Southern Housing Group’s Board approval.

"Discussions over the long-term financing of the Olympic Village will continue into the New Year and in the meantime, construction work on site is making strong progress so the project is firmly on track."

The Olympic Village is scheduled for completion in 2011.