Newham Council is doubling down on its commitment to environmental sustainability by mandating the Passivhaus standard for all new council homes.

The decision, made as part of the borough's Climate Emergency Action Plan, aims to construct highly energy-efficient homes that minimise carbon emissions and reduce energy bills for residents. The policy was outlined in a report on the Affordable Homes for Newham (AHfN) programme, which was discussed at an Officer Key Decision meeting on Friday 14 November 2025.

Newham was one of the first councils to declare a climate emergency in 2019, setting a clear brief for Newham-led developments. The council stated it would: Ensure that new build council homes target Passivhaus 'classic' standard, with minimum 'Low Energy Building' standard certification, as independently certified by the Passive House Institute, with the ability to reduce to the Passive House Institutes 'Low Energy Building' standard for constrained sites if necessary .

The council has specified that it may reduce the standard to the Passive House Institutes 'Low Energy Building' standard for constrained sites if necessary, but the specific criteria used to determine when a site is considered 'constrained' are not defined in the report.

The AHfN programme has faced challenges, including build cost inflation, market volatility, and delivery complexity, exacerbated by Brexit, the pandemic and the war in Europe. Despite these hurdles, the council has delivered a significant number of affordable homes, with 294 schemes completed and 425 on site pending completion as of August 2025. The council had the third highest number of construction starts in London in 2022/23.

As of August 2025, 425 homes were under construction, with an additional 341 being built by Populo Living. While specific completion dates are mentioned for some individual projects, such as Vandome Close scheduled for completion in September 2026 and Leyes Road scheduled for completion in April 2026, the Affordable Homes for Newham Updated Position report does not provide an overall completion timeline for all of these homes.

The council's strategy has diverted to acquisitions and homes delivered through Populo Living. As of August 2025, 263 homes were on site pending completion under the AHfN programme, with an additional 341 on site pending completion by Populo Living, and 375 acquisitions completed.

The report also benchmarked costs, comparing Affordable Homes for Newham team and Populo Living schemes, and summarised tendered construction costs across the affordable homes programme. The average tendered price was £4,087 per square meter, or £375,060 per unit.

To manage build cost inflation and market volatility, the Employer's Agent reviews value for money and cost substantiation for each variation, and contract instructions are issued in accordance with the contract. The Key Decision Affordable Homes for Newham Contracts - Budget Reset report also mentions that the council plans slowly and builds fast, and 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 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. This decision is subject to call-in.

The report recommended that the Cabinet:

  • Note the update on homes that are completed, under construction or did not progress, and the challenges, successes and lessons learned of the Affordable Homes for Newham programme, together with the overall programme cost in exempt appendices.
  • Agree the revised budget increases for each site to a total cost of an additional £16.6m (Appendix 2) and a further contingency allowance of £6.3m (Appendix 1).
  • Delegate authority to the Corporate Director of Inclusive Economy, Housing and Culture, in consultation with the relevant Portfolio Lead, Cabinet Member for Finance and Resources, and the Cabinet member for Council Housing Improvements, to negotiate and agree contract variations with appointed suppliers as required to finalise delivery of the Affordable Homes for Newham programme.

The revised contract sums remain within the delegated authority approved by Cabinet on 16 September 2025, and the financial adjustments have been reflected in the budget to enable timely issuance of purchase orders.

The report noted that Mayor Rokhsana Fiaz OBE, Lead Member for Inclusive Economy, Housing Delivery and Climate Emergency; and Transformation and Performance was consulted at portfolio meetings in June, July and August 2025.

The Building a Fairer Newham Corporate Plan adopted by Cabinet in September 2022 is based around a set of key principles, including a healthier Newham, an inclusive economy, and homes for residents. 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 the number of households in temporary accommodation across the borough, which currently stands at 7,491.

The homes are let at genuinely affordable social rent levels, and they do not generate sufficient rental income to repay the capital investment. Consequently, the programme is underpinned by subsidy through the HRA, which reflects the Council's strategic commitment to addressing housing need rather than achieving commercial returns. The council will test the broad programme-wide implementation of specifications such as Passivhaus and that the Future Homes Standard will see high levels of sustainability maintained at lower cost.