Newham Council is adopting a 'plan slowly, build fast' approach to its housing strategy, aiming to streamline future developments after facing challenges in its Affordable Homes for Newham (AHfN) programme. The council aims to increase the supply of genuinely affordable housing in order to reduce the number of households in temporary accommodation across the borough, which currently stands at 7,4911.
The council approved contract variations for several affordable housing schemes, totaling £16.6 million across nine projects, during an Officer Key Decision meeting on 14 November 2025. 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 AHfN programme, designed to address the housing crisis in the borough, has faced hurdles including build cost inflation, market volatility, and delivery complexity, exacerbated by Brexit, the pandemic, and the war in Europe. A report presented to the council highlighted that while Newham had the third-highest number of construction starts in London in 2022/23, some projects experienced delays and cost increases.
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 |
*97 homes with planning permission were paused due to viability reasons and site constraints. Specifically, Hathaway Crescent (80 homes) was halted due to excessive costs, and Forest View Road (27 homes) was paused because a high voltage cable running through the site could not be relocated2.
The report detailed lessons learned, emphasising the need for thorough planning before commencing construction. The underlying principle to any future development programme is that the council plans slowly and builds fast,
the report stated. It 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. This led to project failings.
The council's strategy has diverted to acquisitions and homes delivered through Populo Living3.
| 2022-2026 programme status (1,500 starts inc acquisitions) | Number of new homes |
|---|---|
| On site pending completion AHfN | 263 |
| On site pending completion by Populo Living | 341 |
| Acquisitions completed | 375 |
| Total | 979 |
| Acquisitions pending to March 2026 (targeted) | 550 |
| Total | 1529 |
The approved budget realignment aims to address these challenges and ensure the completion of ongoing projects. The Affordable Homes for Newham Updated Position report details contract variations for nine projects, totaling £16.6 million. The Army and Navy Public House received the largest contract increase of £4.6m due to complexities such as Passivhaus certification, larger family homes, unregistered land issues, legal challenges, contaminated land, and electrical substation delays. Other projects receiving significant increases include New City Road (£2.4m), and Vandome Close (£2.99m) due to issues such as party wall matters, UKPN delays and electrical substation issues. Schemes affected include Army and Navy Public House (32 homes), Anne and David Street (19 homes), Burgoyne Depot (48 homes), New City Road (28 homes), Vandome Close (55 homes), Morse Close (18 homes), Custom House (95 Homes) and Leyes Road (116 Homes).
The council maintains that the AHFN programme is a central part of its approach to the housing crisis, with increasing the supply of genuinely affordable housing key to reducing the number of households in temporary accommodation across the borough.
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According to the Affordable Homes for Newham Updated Position report, the AHFN programme is a central part of the Council's approach to the housing crisis and increasing the supply of genuinely affordable housing is key to reducing this number. ↩
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According to the Affordable Homes for Newham Updated Position report. ↩
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Populo Living is Newham Council's wholly-owned housing company. ↩