Lambeth Council has approved an ambitious New Homes Programme, aiming to deliver at least 10,000 new homes over the next decade, with a target of 40% being genuinely affordable. The decision was made during a Cabinet meeting on Monday, March 23, 2026, where councillors approved the projects and workstreams for the programme in 2026/27. The initiative aims to address the borough's severe housing crisis, with over 28,000 households on the council housing waiting list and approximately 4,400 households in temporary accommodation.
Councillor Danial Adilypour, Deputy Leader of the Council (Housing, Investment, & New Homes), highlighted the urgency of the situation, stating that the council is committed to delivering high-quality, affordable homes. The programme will build upon progress made in 2025/26, which included the completion of Fenwick Place, a 27-home development providing 100% social rent homes, and securing planning permission for Somerleyton Road Phase 2, a project set to deliver 378 homes with 56% affordable provision.
The council's ambition to deliver at least 10,000 new homes over the next decade is supported by a forward-thinking approach outlined in the New Homes Programme (NHP) 2026/27, which builds upon past progress. The council aims to secure 40% affordable housing across the borough's overall development pipeline, with this ambition to be reviewed annually in line with economic and market conditions.
Lambeth Council defines 'genuinely affordable' housing using the Greater London Authority's (GLA) Affordable Housing Programme definitions. These encompass Social Rent (low-cost rental homes significantly below market levels for households on waiting lists), London Living Rent (LLR), Intermediate Rent, and Key Worker Living Rent (homes let at a discount of at least 20% to local market rents for middle-income households and key workers), and Affordable homes for sale (including Shared Ownership and Discounted Market Sale).
Several key developments are part of the programme:
- Somerleyton Road Phase 2: This partnership with Higgins will deliver 378 homes, with 127 social rent units and 60 intermediate units.
- 49 Brixton Station Road: This scheme aims to provide 288 homes, with at least 40% affordable housing (fully social rent), alongside market facilities and affordable workspace. The scheme will deliver
employment workspace, of which at least 1000 square meters will be affordable workspace let at circa 47% discount on market rent levels, and an enterprise and community hub.
London Square, the development partner, hasengaged extensively with the community and undertaken co-design exercises, where possible, in respect of elements of the scheme design.
Map showing the location of Lambeth Town Hall and Brixton Station, relevant to the New Homes Programme discussion. - New Homes Hexagon (NHH) Partnership Agreement: A collaboration with Countryside Properties (UK) Limited to deliver approximately 500 homes across six council-owned sites.
- Leigham Court Road: A Development Agreement with Pocket Living for a 92-home scheme, including 15 social rent homes to be owned and managed by the council.
- Westbury Estate Renewal: The procurement of a Development Partner for this regeneration project, which could deliver around 1,000 homes with a minimum of 40% affordable housing.
- Charters Close: This development will provide 18 affordable independent living homes for young adults in partnership with Centrepoint.
- Local Authority Housing Fund (LAHF) Round 3: This programme has already delivered 65 homes, with a further 26 nearing completion.
The council also plans to secure more suitable and affordable homes for temporary accommodation and reduce reliance on nightly paid provision. The programme will ensure viability and value-for-money assessments are completed for all schemes to prevent financial risk to the council's Housing Revenue Account or General Fund.
During the meeting, Councillor Scott Ainslie raised concerns about sites being included in the pipeline before planning permission was granted, with officers explaining this is standard practice for identifying potential sites and preparing for grant funding bids. Councillor Ben Kind sought clarification on the number of social rent homes completed since 2017, with officers confirming 359 social rent homes have been delivered, refuting claims of only four homes being built.
The Equalities Impact Assessment for the New Homes Programme was also discussed, highlighting potential positive impacts for ethnic minority groups and female-headed households due to the focus on affordable housing. The assessment acknowledges potential short-term negative impacts during estate renewal and construction for vulnerable residents, such as older residents, disabled residents, and families with children. Mitigation strategies include site-specific assessments, inclusive engagement with translation and interpretation support, tailored support for vulnerable households via Mitigation Panels, and considerate construction practices to minimize disruption. The council also aims to rehouse households with support to minimize disruption to schooling and essential support networks where reasonably practicable.
The New Homes Programme (NHP) must be financially viable and recover full costs without burdening the Housing Revenue Account (HRA) or General Fund (GF). Delivery methods will be assessed case-by-case to prioritize social rent homes and ensure value for money. Long-term management of new developments is expected to be undertaken by a Registered Provider, which would reduce core rental income to the HRA and necessitate a corresponding reduction in management costs. The council also plans to maximise the use of existing and future Right to Buy receipts and Payment in Lieu (PIL) balances to support delivery.
While the meeting information does not provide a projected cost for the entire New Homes Programme, it does mention that the council has been granted Exceptional Financial Support (EFS) for its General Fund (GF) of £50m for 2024/5, £46m for 2025/26, and £20m for 2026/27. The Housing Revenue Account (HRA) also received a £40m capitalisation directive as Exceptional Financial Support. The council aims to maximise the use of GLA grant, MHCLG grant, Right to Buy receipts, Payment in Lieu (PIL) balances, and explore alternative financing mechanisms, including institutional finance and pension-backed finance for temporary accommodation acquisitions.
