Tower Hamlets Council's strategic plan for 2026-2030 has identified significant risks to the delivery of its housing commitments, primarily stemming from the reliance on private sector sales to subsidise affordable housing.

During a meeting of the Overview & Scrutiny Committee on Tuesday, 22 September 2026, David Edgar, Director of Regeneration and Development, highlighted that schemes led by the private sector are the greatest risk due to reduced demand for private market units. He noted that the council cannot deliver all housing itself.

A group of people, likely council staff, engaged in discussion during a meeting or forum.
A group of people, likely council staff, engaged in discussion during a meeting or forum.

The discussion took place during the committee's review of the draft Strategic Plan 2026-2030, which sets out the administration's vision, priorities, and commitments for the next four years. The plan aims to address eight key priorities, including delivering affordable housing.

The council is concerned about schemes led by the private sector that rely on market sales to subsidise affordable housing, as there is a vastly reduced demand for private market units. To mitigate this, the council is stepping in as a council to help, for example, by acquiring homes from developers as social rented homes, which also helps kickstart delivery of the schemes. However, it is acknowledged that we can't do it all as a council. So, you know, we won't be able to deliver everything ourselves.

This implies that affordable housing delivered through Section 106 agreements with private developers is more vulnerable to these funding risks.

Beyond private sector sales, the council is exploring other avenues to support affordable housing delivery. It is looking to secure grants from the Greater London Authority and has put a very substantial bid in to government and the GLA to support that and hopefully support our objectives related to housing delivery. Additionally, there is a commitment to champion the delivery of up to 40% affordable housing in new developments.

More information on the council's strategic plan can be found in the public reports pack for the Overview & Scrutiny Committee meeting on 22 September 2026: Public reports pack 22nd Sep 2026.

Bar chart showing weekly minimum costs for couple parents with two children in London and urban UK outside London, broken down by cost category.
Bar chart showing weekly minimum costs for couple parents with two children in London and urban UK outside London, broken down by cost category.