Southwark Council has confirmed that all 340 homes on the Ledbury Estate will be council social rent properties following a decision by the Executive committee.
The council approved significant variations to the Ledbury Estate Renewal Contract with Higgins Partnerships 1961 PLC, increasing the contract value by £35,375,849 to a total of £215,336,848. This adjustment accounts for inflationary uplifts and compliance with the Building Safety Act 2022.
The contract variations and cost increases were necessary to comply with legal requirements mandated by the Building Safety Act 2022. This included passing through the Building Safety Regulator's (BSR) Gateway 2 and 3 processes, and ensuring design amendments complied with prevailing regulatory standards related to High-Risk Buildings. Specifically, the report states: This figure includes both the inflationary uplift and range of essential additions to the contract in order to make the design compliant with prevailing regulatory standards, most notably those related to High-Risk Buildings as defined by the Building Safety Act 2022 including passing through the Building Safety Regulator's (BSR) Gateway 2 and 3 processes.
Crucially, £36,950,000 of Right to Buy receipts will be used to fund the conversion of 65 homes, originally designated for private sale, into council homes for social rent. The original intended tenure for these 65 homes was private sale, a designation made to help fund the development. Phase 1 of the project will deliver 51 new council homes for social rent, 9 homes for leaseholders, and 20 homes for private sale. Phase 2 will see 45 homes originally intended for private sale become additional council homes for social rent. This decision ensures that all homes across both phases of the Ledbury Estate Renewal will be for social rent, increasing the number of council homes and reducing borrowing requirements.
Phase 2 construction works are set to commence in October 2026, following the council's decision not to enact the final break clause in the contract. The demolition of Skenfrith House, Sarnesfield House, and Peterchurch House is covered under Section 7 of the contract. The design, construction, and completion of 77 dwellings in Blocks B1 and B2, and 183 dwellings in Blocks B3 and B4, along with a replacement community centre and commercial units, fall under Sections 8-12. While the original offer document indicated Phase 2 would take three years to build, suggesting a completion around late 2029, Higgins' ambition is to start new homes works in October 2026, which would accelerate the timeline. The contract completion date is listed as 31/03/2030.
The Executive also approved changes to sequencing, building safety regulations compliance, and updated drawing and tenure schedules. This decision was made during a meeting on Tuesday 15 September 2026, as detailed in the Public reports pack for the Executive meeting.
