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Westminster Council snubs Khan grant offer due to estate regeneration plans
A central London council declined to bid for a share of £1bn of housing grant offered by City Hall, due to concerns it would “delay” plans to demolish and rebuild estates in the borough.
Last week, City Hall announced the allocations for the grant programme which is expected to deliver 14,700 new council homes in the capital, with 11,000 at near-social rent levels.
The fund is thought to have been oversubscribed after a number of boroughs submitted sizeable bids.
However, Westminster Council and Labour-run Lambeth chose not to bid at all, with Westminster linking its decision to snub the programme to its regeneration schemes.
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Both Lambeth and Westminster are planning major estate regeneration schemes, which would require tenant ballots in order to leverage Greater London Authority (GLA) grant in line with City Hall guidance published in February.
A spokesperson for Westminster Council said: “We’re building more homes for Westminster residents, and are on course to exceed our target of 1,850 new affordable homes by 2023.
“Mayoral funding is always welcome, but not when it comes with restrictions that could negatively impact our residents.
“Were we to apply for this money, it could cause massive delays to our renewal schemes, keeping people stuck on housing waiting lists.”
It said it would be increasing the number of council homes at its Ebury Bridge and Church Street estates through regeneration.
It is understood the council believes the terms of GLA funding mean it could be lost if, for example, there was a delay procuring a delivery partner for the projects.
Adam Hug, leader of the Labour group at Westminster Council, said: “They have been very clear they will not apply because they will not accept resident ballots on estate regeneration schemes. The lack of grant funding means a higher proportion of private homes are going to be built than otherwise would be."
In the GLA previous round of housing grant allocations last summer, Lambeth was allocated nearly £55m – the most of any local authority.
A spokesperson for the council said: “We’ve been concentrating on the work needed to deliver the new affordable homes covered by that round of funding.”
Lambeth Council’s cabinet has agreed one large regeneration project which has not yet secured GLA funding, at the Central Hill Estate, while it has grant in place for a further five.
But it said it is yet to confirm the funding arrangements for the Central Hill regeneration and has not ruled out bidding for GLA grant.
Labour-run Redbridge Council was the only other borough not to receive funding through the £1bn programme.
James Murray, deputy London mayor for housing, said: “The mayor’s Building Council Homes for Londoners programme – the first ever programme from City Hall dedicated to council homebuilding – has been very well received by ambitious boroughs across London.
“Lambeth Council already received money towards building new council homes in an earlier round of funding and the mayor is supporting Redbridge to make sure that, despite central government’s restrictive rules, they can reinvest receipts from Right to Buy sales in new council homes.
“We look forward to continuing to work with both boroughs to find opportunities to build even more council homes.
“All other stock-owning boroughs across London successfully bid for funding through the mayor’s programme, with the exception of Westminster who unfortunately chose not to take part.”
Update: at 14.00pm 01/11/18 an updated comment from the GLA was added to the story.
