Southwark Council is planning a £138.5m investment to develop 581 new social-rented homes in the first development site for its Aylesbury estate regeneration.
The new proposals are a significant uplift from existing plans of 301 social-rented homes, with the council backing a switch of tenure for 280 homes originally planned for private sale and intermediate rent.
The investment from the council’s Housing Revenue Account will accelerate the housing delivery without relying on cross-subsidy sales in a challenging market.
Southwark Council and partner Notting Hill Genesis aim to bring forward development some 15 years after the council initially outlined plans to replace the 2,700 homes in the 1960s estate.
Southwark agreed a strategic partnership with Notting Hill Genesis as development manager in 2014, following on from early delivery in standalone agreements with L&Q. They planned to build 4,000 homes, of which 50% would be affordable housing, but the council was unable to finance development.
However, the 2018 lifting of the borrowing cap on the Housing Revenue Account and new grant funding from the Mayor of London has made this development possible.
Council documents released ahead of the cabinet meeting on 14 July outline proposals for the development of 842 mixed-tenure homes on the first development site.
Southwark estimates the 581 council homes will cost £193m to build, with £138.5m from the HRA and a further £54.4m in affordable housing grants from the Greater London Authority.
A further report on phasing and rehousing will be presented to the cabinet later this year.
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