Council to sell off land in exchange for affordable housing

The details emerged in a report that went before the mayor and cabinet at the end of January.

It said that through the approach to “public-private” partnering of assets, Lewisham Council is “addressing critical affordability challenges for households in housing need, promoting mixed-tenure housing, offering pathways to homeownership, and supporting local economic activity by ensuring continued opportunities for local businesses and employment”.

The report, agreed by members, sought approval for officers to finalise arrangements with the developers for the sites.

The Willow Way site in Sydenham was formerly used as a housing office and council depot until it was cleared for temporary use in 2014. There are two adjoining sites which are privately owned.

Developer Kitewood has an option agreement to buy the land on both privately owned sites.  

According to the report, the owners of the adjoining sites sought planning permission for their current ownership only. However, planning permission was refused as it “did not deliver on the council’s plans for a masterplan for the area”.

“The council has been in discussion with the landowners who wishes to purchase [its] land to add to their existing holdings at Willow Way,” the report said.

Feasibility work has suggested that around 220 new homes can be built on the bigger site, with the council owning 74 social rent homes and 34 shared ownership homes.

Officers have held advanced discussions with the developer and landowners to develop joint proposals that deliver the planning required masterplan for the area, the report said.

The “restrained” nature of the Parker House site, with an industrial estate to one side and business centre Evelyn Court to the other, has “prevented officers from being able to develop viable plans for new use”, according to the report.

It said: “The owners of Evelyn Court have been planning to develop their site for housing, which has presented an opportunity for officers to consider a partnership whereby the council contributes land and funding in exchange for 50% of the housing being council-owned affordable housing on a 999-year lease.”

The council expects around 150 new homes can be built on the larger site, with Lewisham owning 31 social rent homes and 38 shared ownership homes.

James-J Walsh, cabinet member for inclusive regeneration and planning at Lewisham Council, said: “We’re getting on building the homes that Lewisham needs, and we’re using all the tools we have to do it.

“With more than 13,000 people on the waiting list for housing and 3,500 families from Lewisham in temporary accommodation tonight, releasing land assets to build housing is a vital way that we can get more residents into safe and affordable homes.

“There’s also a significant incentive to getting homes built for local authorities. The cost of nightly paid accommodation for those in temporary accommodation across London is £4m a day.”