Despite planning approval, the construction of 97 planned homes in Newham has stalled, according to a recent Officer Key Decision meeting.
The holdup is part of the Affordable Homes for Newham (AHfN) programme, which has faced challenges including build cost inflation, market volatility, and delivery complexity. A report presented at the meeting on Friday 14 November 2025, noted that while no additional funds are being requested, the programme has delivered fewer homes than initially intended when it was agreed in 2019.
The Officer Key Decision approved contract variations for several affordable housing schemes, allowing for a total cost increase of £16.6 million across nine projects. This decision, made by Paul Kitson, Corporate Director of Inclusive Economy & Housing, follows a Cabinet meeting on 16 September 2025, where authority was delegated to vary budgets for JCT Design & Build contracts. The decision is subject to call-in.
The report detailed the achievements of the programme, noting that Newham Council had the third highest number of construction starts in London in 2022/23. As of August 2025, the programme status regarding the 2016-2022 political cycle was:
| 2016-2022 programme status (1000 starts) | Number of new homes |
|---|---|
| Schemes completed | 294 |
| On site pending completion | 425 |
| Delivered by Populo Living | 218 |
| Early housing sites | 15 |
| Paused with planning permission* | 97 |
| Total | 1,049 |
The report also detailed the complexity and challenges to delivery, noting that the council has had to navigate a series of significant issues, brought about by the implementation of the UK leaving the European Union, a global pandemic, and war in Europe.
The report listed the main issues impacting the programme as:
- Build cost inflation
- Market volatility
- Delivery complexity
The report also detailed lessons learned, stating that the underlying principle to any future development programme is that the council plans slowly and builds fast.
The report noted that some of the key failings have been identified when construction contracts were awarded before on-site risks had been resolved due to the time constraints on grant funding.
The report considered the alternative of the Council choosing not to proceed with approving budget variations, but noted that this is likely to result in legal action from contractors resulting in additional legal fees and/or suspension of the schemes.
The Public Reports Pack provides further details on the Affordable Homes for Newham programme and the updated position.