Lambeth Council has approved plans to accelerate its New Homes Programme (NHP), aiming to deliver at least 10,000 new homes over the next decade with a target of 40% affordable housing. The decision, made by the council's Cabinet on Monday, March 23, 2026, addresses the borough's severe housing crisis, which has seen 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 urgent need for action, stating that the programme will focus on delivering genuinely affordable housing, with a particular emphasis on social rent homes. The NHP has already seen progress in 2025/26, including the completion of Fenwick Place, a 27-home scheme providing 100% social rent homes, and securing planning permission for Somerleyton Road Phase 2, which will deliver 378 homes with 56% affordable provision.
Lambeth Council defines 'genuinely affordable housing' and 'social rent homes' using the Greater London Authority's (GLA) Affordable Housing Programme definitions. This includes Social Rent, which are low-cost rental homes set significantly below market levels, primarily for households on local authority waiting lists. Other categories include London Living Rent (LLR), Intermediate Rent, and Key Worker Living Rent, which are homes let at a discount to local market rents (usually at least 20% lower) to help middle-income households save for homeownership and key workers live affordably in London. Affordable homes for sale encompass Shared Ownership (where buyers purchase a share and pay rent on the remainder) and Discounted Market Sale (sold at a reduced rate, typically 20% below market value).
Several key projects were approved for the 2026/27 programme. These include the Somerleyton Road Phase 2 development, which will deliver 378 homes with 127 social rent units and 60 intermediate units. The Somerleyton Road Phase 2 development is forecast to start on site imminently, with the remainder of the development expected to begin in August 2026. Works on the Extra Care element will be ongoing throughout 2026/27.
The 49 Brixton Station Road scheme is set to provide 288 homes, with at least 40% affordable housing, alongside market facilities and affordable workspace. A start on site for this project is forecast for March 2027, with lease drawdown anticipated by March 31, 2027, and construction beginning in early the 2027/28 financial year.
A partnership agreement with Countryside Properties (UK) Limited, known as the New Homes Hexagon, aims to deliver approximately 500 homes across six council-owned sites. Additionally, a Development Agreement with Pocket Living for Leigham Court Road will deliver 92 homes, including 15 social rent homes to be owned and managed by the council.
The regeneration of Westbury Estate is also moving forward, with the procurement of a Development Partner expected to deliver around 1,000 homes with a minimum of 40% affordable housing. The New Homes Programme (NHP) acknowledges potential short-term negative impacts during estate renewal and construction, particularly for older residents, disabled residents, and families with children. These impacts can include disruption to routines, schooling, support networks, and temporary impacts from living near construction sites such as noise and dust. The council plans to mitigate these impacts through early, inclusive, and ongoing resident engagement, tailored support for vulnerable households, requirements for site-specific Equalities Impact Assessments (EqIAs), clear communication on timescales and potential rehousing processes, ensuring safe and accessible routes around construction sites, and partnership working between Housing Services, Housing Delivery, Adult Social Care (ASC), and Children's Services. For the Westbury Estate renewal, the council will work with the appointed Development Partner to prepare and implement a programme for resident ballots, planning applications, and vacant possession strategies.
Furthermore, Charters Close will provide 18 affordable independent living homes for young adults in partnership with Centrepoint.
The delivery of these new homes will be supported by a range of financial mechanisms and funding sources. These include the Greater London Authority's (GLA) London Social and Affordable Housing Programme (LSAHP) 2026-36, providing a significant funding settlement of up to £11.7bn for London. The Local Authority Housing Fund (LAHF) Round 4 has offered Lambeth £33m to acquire 137 new homes over four years. The programme will also maximise the use of existing and future Right to Buy (RtB) receipts, although their impact is expected to be limited due to changes in discount rules. Payment in Lieu (PIL) balances will be utilised to aid in bringing forward delivery wherever suitable. Partnerships with developers and Registered Providers (RPs) will be crucial for sharing risk and leveraging expertise. The council will also maximise the use of its council-owned land assets, employ internal borrowing using available cash balances for capital investment, and secure grant funding from the GLA and MHCLG.
Beyond the primary ambition of delivering 10,000 new homes with 40% affordability, the success of the New Homes Programme will be measured through several key performance indicators. These include monitoring starts on site and completions, ensuring financial sustainability and value for money by avoiding financial risk to the Housing Revenue Account (HRA) or General Fund (GF) and meeting the Council's Best Value duty. Environmental commitments, such as prioritising energy-efficient, net-zero homes and sustainable design principles, will also be assessed. Resident engagement will be monitored annually, with efforts to address underrepresentation and act on feedback from surveys and engagement groups. Social value initiatives, including creating skills, employment, and training opportunities through contractors and supply chains, and choosing local small to medium-sized enterprises, are also key metrics. Community safety will be enhanced through site activation and fostering positive relationships with adjacent areas, informed by 'secured by design' principles. Child-friendly elements, involving children and young people in engagement and procurement, and contributing positively to health and wellbeing through new homes, community spaces, jobs, and improved public realm, will also be used to measure the programme's success.
For the long-term management and maintenance of new social rent and affordable housing units, schemes delivered through partnerships with developers will often see affordable homes sold to Registered Providers (RPs) with council nomination rights, meaning the RP would typically manage the properties. For council-owned social rent homes, the council will continue to own and manage them. The Asset Management Framework (AMF) outlines strategic housing priorities for managing and investing in council homes and estates, aiming to make all homes warm, modern, and closer to net-zero ambitions. The council also operates a dedicated Repairs Service and is committed to improving resident satisfaction with repairs and addressing issues like damp and mould, in line with new legislation such as Awaab's Law.
Further details on the New Homes Programme can be found in the New Homes Programme Update 2026/27 and Appendix 1 - NHP Delivery Monitor. The council's approach to resident engagement is detailed in Appendix 2 - NHP Engagement Principles, and the Equalities Impact Assessment is available in Appendix 3 - NHP EIA 2026. Information on the Housing Strategy Progress is in Appendix 4 - Housing Strategy Progress. The full agenda for the Cabinet meeting can be accessed via the Agenda frontsheet Monday 23-Mar-2026 17.00 Cabinet.pdf, and the complete Public reports pack Monday 23-Mar-2026 17.00 Cabinet.pdf is also available. The Minutes of Previous Meeting.pdf are also provided.
