Croydon Council is set to build 1,000 new homes as part of a wider strategy to tackle homelessness and increase housing supply. The ambitious plan, discussed at a Housing Assurance Board meeting on Monday, September 14, 2026, aims to reduce reliance on temporary accommodation and improve financial sustainability.
The council has submitted a bid to the Greater London Authority (GLA) for a 10-year programme to deliver these new homes. The council is anticipating an outcome from the GLA in the coming weeks. If successful, a detailed timescale for delivery and financing will be established, requiring financial appraisal work before any site is committed and delivery is agreed. Planning permission will also be a prerequisite, with several gateways to navigate before funds can be committed and work can commence.
This initiative is part of a broader effort to increase both market and social/affordable housing options across the borough. The council's Temporary Accommodation Strategy 2026 to 2030 outlines a goal to reduce the number of households in temporary accommodation from approximately 3,322 in 2025/26 to 2,563 by 2029/30, a reduction of around 23%. The development of new homes, including the potential 1,000 homes from the GLA bid, directly supports this objective.
Options being explored for increasing social and affordable housing include building on council land, utilizing modular homes, enabling development by Registered Providers, joint ventures, acquiring Section 106 affordable homes, buying back ex-Right to Buy properties, and acquiring or leasing blocks for temporary accommodation. The council is already constructing new homes on council land at Regina Road and is reviewing other potential sites.
In addition to new builds, the council is actively acquiring existing homes using Right to Buy receipts and government grant funding. This strategy aims to provide more settled accommodation for residents currently in expensive temporary housing. The council is also developing a 30-year Housing Revenue Account business plan to balance capital expenditure on new builds with the need to invest in existing stock.
Efforts are also underway to improve the efficiency of existing housing stock management, including initiatives to extend existing properties, convert unused spaces, and encourage downsizing. The council is also working to recover properties through tenancy fraud investigations.
The council faces several challenges in delivering this ambitious housing plan. These include the cost of building, securing affordable housing from private developments, and the need to build capacity within the Regeneration team. Clarifying the Housing Revenue Account's borrowing capacity to match grant funding is crucial, as is identifying suitable sites and obtaining planning permission. The council also needs to ensure the capacity of its team to project manage and deliver the program effectively. The current financial context, with commissioners overseeing finances, makes further investment in market rental or for-sale homes through a council company unlikely. Potential HRA borrowing could lead to higher loan repayments, reducing revenue for housing services. Managing properties acquired out of borough presents complexities in day-to-day operations, rent collection, and emergency repairs. Ensuring the suitability and efficient delivery of new build modular housing is also a consideration. The challenge of addressing empty homes, particularly in the private sector, remains. The local plan is still awaiting adoption, impacting cross-departmental collaboration between planning and housing. The current voids process, with contractor performance issues and the need for more robust management, also presents a hurdle. Finally, the limited capacity of the current team to manage the scale of the housing program is a significant concern.
To ensure the quality and long-term affordability of housing options, the council will undertake detailed financial appraisal work for each site and secure planning permission. For the 1,000 new homes bid to the GLA, if successful, this detailed financial appraisal will be a prerequisite to delivery. The council is also exploring modular housing for smaller sites and low-rise developments and is in discussions with potential providers. Contractor performance will be a key consideration, with measures to ensure quality and contractual enforcement where necessary. A revised technical specification referencing lettable standards is being developed, and three new specialist contractors are being procured to enhance flexibility and reduce void loss.
For more details, refer to the Public reports pack for the Housing Assurance Board meeting on 14th September 2026 Public reports pack 14th-Sep-2026 18.00 Housing Assurance Board.
