Lewisham Council has committed to investing £600 million in building new council homes over the next five years as part of its ambitious housing strategy, aiming to deliver genuinely affordable homes in our borough .

The significant investment, approved by the Mayor and Cabinet on February 11, 2026, will also focus on tackling damp and mould in existing properties and improving energy efficiency to reduce carbon emissions. The Building for Lewisham programme has already started construction on almost 2,000 homes.

A pie chart illustrating the allocation of council budget across various priority areas, with 'Health & Wellbeing' and 'Children & Young People' receiving the largest proportions.
Pie chart illustrating the allocation of council budget across various priority areas.

Councillor Will Cooper, Cabinet Member for Better Homes, Neighbourhoods and Homelessness, highlighted the budget's reflection of the council's commitment to social housing. He stated that £148.7 million is allocated for the next year, with over £600 million planned for the next five years for new council homes, tackling damp and mould, and improving energy efficiency.

This investment is part of the wider Council Budget for 2026/27, which Mayor Brenda Dacres outlined as a commitment to strong communities, fairness, and resilience, alongside careful financial management. The budget is shaped by a manifesto focusing on a cleaner and greener borough, a strong local economy, decent and secure housing, opportunities for young people, safer communities, openness and inclusion, and better health and well-being.

A pie chart illustrating the breakdown of Lewisham Council's expenditure across various departments, with
Lewisham Council's expenditure breakdown.

Despite a real-terms reduction in spending power per person of 17% since 2010 and rising demand for services, Lewisham has remained resilient. The Council will need to deliver approximately £35 million of savings over the next three years, a figure revised down from previous estimates of £50 million due to increased government support.

The budget includes funding for rising pressures, targeted investments, and capital investments in housing, regeneration, education, skills, and the local environment. Lewisham will not be raising Council Tax above 5%, demonstrating a commitment to supporting residents and local businesses while managing finances responsibly.

Read the full 2026-27 Budget Report and Public reports pack for more details.