Regenerating council estates to boost social housing provision must be a “core” part of efforts to tackle London’s housing crisis, boroughs have declared.
A Decade of Renewal: the Contribution of London Estate Regeneration – a new report from London Councils and the London Housing Director’s Group – argues that regenerating estates can increase the supply of much-needed housing and modernise existing homes.
The report highlights that 10,000 council homes (a mixture of new, additional homes and replacement homes) could be delivered collectively at nine case study estates alone. Additional benefits include new employment and skills opportunities for Londoners, higher environmental standards, and better health and well-being through improved housing quality, play spaces, and access to local services.
With London facing “enormous challenges” around housing delivery, homelessness, and standards in social housing, boroughs emphasise the importance of estate regeneration projects – which can range from refurbishing existing estates to the demolition and rebuilding of entire sites.
However, boroughs also say they urgently need more “funding firepower” if they are to overcome the challenges stalling development and expand their regeneration plans.
London Councils’ analysis suggests a continuing squeeze on boroughs’ resources means they are being forced to plan a real-terms spending reduction of £269m on council housing repairs and investment over the next four years.
As the government prepares its Budget, London Councils is seeking more support to stabilise finances in the social housing sector. The cross-party group’s priorities include:
A social rent convergence rate of at least £3 per week, which will help bring social rents to a consistent level at a faster pace and promote fairness between tenants occupying similar properties in similar locations within the social housing sector.
London Councils estimates this measure would raise an additional £588m for council housing budgets in the capital over five years compared to the current policy of social rents rising by CPI+1 per cent alone.
Nationally or regionally coordinated programmes focused on estate regeneration along with flexible, long-term funding to sustain delivery. Boroughs point out that restrictions within the Social and Affordable Homes Programme – the main source of government funding for delivering new affordable housing – limits support for replacement homes and the redevelopment of existing estates.
The government enabling a more holistic and strategic approach to funding could unlock stalled schemes and align investment with its national missions on growth, health, and net zero.
Cllr Grace Williams, London Councils’ Executive Member for Housing & Regeneration, said:
“Building new council housing and improving the quality of existing homes are top priorities for London boroughs.
“As this report shows, regenerating council estates in the capital offers exciting opportunities to deliver new social housing fit for the 21st century. London is grappling with enormous housing challenges, and estate regeneration should be a core part of our approach to tackling the crisis.
“However, the continuing squeeze on our resources holds us back. We urgently need more funding firepower if we are to unlock stalled sites and ramp up regeneration. The coming Budget and government decision on social rent convergence will be pivotal for making this happen.”
Joanne Drew, Co-Chair of the London Housing Directors’ Group, said:
“From these examples of estate regeneration across the capital we can clearly see boroughs’ determination to deliver modern, high-quality council housing for Londoners.
“Regeneration can help London meet its housing targets, while also improving the quality, safety, and sustainability of our estates.
“But we are also encountering significant barriers, not least the immense pressures on our council housing budgets. To realise the full potential of estate regeneration in London, we need the right tools, financial footing, and policy direction. Boroughs are keen to work in partnership with the government to achieve this.”
Read the full report here: A Decade of Renewal: the Contribution of London Estate Regeneration
ENDS
1. London faces the most severe housing and homelessness pressures in the country. London Councils estimates that one in 50 Londoners are homeless and living in temporary accommodation, including one in 21 children. More than 300,000 households are on waiting lists for social housing in the capital.
2. More information on London Councils’ policy position on rent convergence can be found here.