Lambeth Council has reaffirmed its commitment to delivering at least 10,000 new homes over the next decade, with a significant focus on ensuring 40% of these are genuinely affordable.

The council's Cabinet met on Monday, March 23, 2026, to discuss the New Homes Programme Update for 2026/27. Councillor Danial Adilypour, Deputy Leader of the Council (Housing, Investment, & New Homes), highlighted 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. The council's strategy for addressing the significant cost of temporary accommodation (TA) includes reducing reliance on costly nightly paid provision, increasing the volume and quality of Private Rented Sector (PRS) accommodation, and acquiring new homes through the Local Authority Housing Fund (LAHF) Round 4. New housing developments will contribute to reducing TA costs in the long term by increasing the supply of genuinely affordable homes.

Aerial view of London with residential areas and the Houses of Parliament
Aerial view of London, showcasing residential areas and the Houses of Parliament in the distance, relevant to Lambeth Council's New Homes Programme.

Lambeth Council's ambition is to secure 40% affordable housing across the borough's overall development pipeline. The definition of 'affordable housing' used by Lambeth aligns with the Greater London Authority's (GLA) Affordable Housing Programme definitions, which include:

  • Social Rent: Low-cost rental homes set at significantly below market levels, primarily for households on local authority waiting lists.
  • London Living Rent (LLR), Intermediate Rent, and Key Worker Living Rent: Homes let at a discount to local market rents, usually at least 20% lower, designed to help middle-income households save for homeownership, and key workers to live affordably in London.
  • Affordable homes for sale: Includes Shared Ownership (buyers purchase a share and pay rent on the remainder) and Discounted Market Sale (sold at a reduced rate, typically 20% below market value).

Monitoring of the 40% target will be done on a portfolio basis and reviewed annually in line with economic and market conditions. Viability and value-for-money assessments will be completed for all New Homes Programme (NHP) schemes to ensure no financial risk to the Housing Revenue Account (HRA) or General Fund (GF).

Progress made in the 2025/26 period includes 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. For Somerleyton Road Phase 2, 127 units will be Social Rent and 60 will be intermediate units, making up 56% affordable provision by habitable room. The council also confirmed that 359 social rent homes had been delivered since 2017.

Several other key developments were discussed, including:

  • Somerleyton Road Phase 2: A partnership with Higgins to deliver 378 homes, including 127 social rent units.
  • 49 Brixton Station Road: Set to provide 288 homes, with at least 40% affordable housing, specifically fully social rent tenure, alongside market facilities and affordable workspace.
    Map showing the location of Lambeth Town Hall and Brixton Station
    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.
  • Westbury Estate Renewal: Procurement of a Development Partner for a regeneration project expected to deliver around 1,000 homes with a minimum of 40% affordable housing. Bidders were given the opportunity to meet with representatives from the local community at a 'Meet the Bidders Day' event in October 2025. Once a partner is appointed, the council will work with them to prepare and implement the programme for the residents' ballot, planning application, and vacant possession strategy. General resident engagement for the New Homes Programme includes regular updates through Resident Steering Groups, project websites, newsletters, estate drop-ins, and dedicated Resident Engagement Officer surgeries.
  • Charters Close: A development that 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 outlined plans for 2026/27, focusing on bringing forward housing delivery on council-owned land. Decisions made at the meeting included approving the projects and workstreams for the New Homes Programme in 2026/27 and noting the council's ambition for 40% affordable housing across the borough's development pipeline. The council has an ambition to enable the delivery of at least 10,000 new homes over the next decade, with the ambition to be reviewed annually in line with economic and market conditions.

During the meeting, Councillor Scott Ainslie raised concerns about sites being included in the pipeline before planning permission was granted. Officers explained this is standard practice for identifying potential sites and preparing grant funding bids.

The Equalities Impact Assessment for the New Homes Programme highlighted potential positive impacts for ethnic minority groups and female-headed households due to the focus on affordable housing, while acknowledging potential short-term negative impacts during construction, particularly for older residents, disabled residents, and families with children. The planned mitigation strategies include site-specific EqIAs, inclusive engagement, tailored support for vulnerable households, considerate construction practices, accessible routes around sites, scheme-level rehousing support, provision of translation and interpretation support, and Mitigation Panels to be undertaken in advance of construction commencing.

Illustration of a document with a checklist and pencil
An illustration depicting a document with a checklist and a pencil, symbolizing planning and decision-making for the New Homes Programme.

The meeting information does not provide an overall estimated cost for the New Homes Programme. However, it does mention that the programme will need to be delivered ensuring it secures maximum financial value in the use of its assets and does not place any additional burden on the General Fund or the Housing Revenue Account. Primary funding sources mentioned include GLA grant, LAHF Round 3 and Round 4, Right to Buy receipts, Payment in Lieu (PIL) balances, partnerships with developers and Registered Providers, and internal borrowing.