Notting Hill Genesis to pull out of future phases of large London estate regeneration

But Southwark Council will seek new development partners to move ahead with the rest of the estate regeneration, which includes the delivery of a further 2,200 homes once NHG finishes.

"Having more development partners working on the Aylesbury Estate will add more construction capacity and will mean we can move ahead more quickly with the regeneration," a spokesperson for the council said.

This agreement in principle will be presented to the council’s cabinet today, and if approved will be subject to final agreement between the two parties.

Southwark Council and NHG entered a partnership to regenerate the estate in 2014, and have so far jointly delivered 703 homes, of which 581 are new council homes.

The regeneration programme is due to deliver 4,200 new homes in total, 50% of which will be affordable.

A report to the council’s cabinet said plans for the Aylesbury Estate have been “beset by legal delays and other challenges”, noting that residents want the council to “move faster”.

In 2024, a tenant on the estate won her claim against Southwark Council and NHG, arguing that a later amendment – made to the masterplan via a ‘drop-in’ application – had gone far beyond the original plans agreed with the community.

One of the three phases NHG will complete work on is ‘phase 2B’, which is awaiting final planning permission and will provide a further 640 homes, 50% of which will be affordable. Southwark Council will have 100% nomination rights to the social rent homes.

“The developer will relinquish its rights and obligations to the remaining ‘future’ phases (that have not been implemented) of the estate renewal,” the report to cabinet said.

It also said the proposed variation to the Development Partnership Agreement will require Southwark Council to make a financial contribution in order to bring NHG’s involvement in the future phases to an end.

These costs will be met through existing capital programme arrangements and may require “some re-profiling” of the Housing Investment Programme, according to the report.

It continued: “While this will temporarily reduce capacity to deliver some housing‑related capital schemes within the year, gaining full control of the future phases is expected to deliver long‑term benefits. 

“These include reduced exposure to operational and programme risks, more efficient delivery of new homes and the ability to better manage the financial and social impacts associated with delays under the current arrangements.

“On this basis, the proposal is considered affordable and represents value for money for the council and its residents.”

Southwark Council first approved the Aylesbury Estate renewal in 2004 and selected both L&Q and NHG as development partners. L&Q completed the early sites in 2017.

To date the masterplan has delivered 1,041 homes, by both developers, and a further 321 new homes are expected to be delivered this year.

Sarah King, leader of Southwark Council, said: “The Aylesbury Estate is at the heart of our borough, and we’re determined to build the community that residents and future generations deserve.

“This is one of the most complex regeneration schemes anywhere and in partnership with Notting Hill Genesis, we’ve delivered 581 new council homes and fantastic new spaces like the Una Marson Library and Harold Moody Health Centre, and open spaces to be enjoyed by generations of Aylesbury residents.

“But we also know many residents have raised concerns that progress has been too slow and this has caused serious problems including antisocial behaviour in and around the vacant blocks on the estate. 

“We and Notting Hill Genesis share these concerns and have decided to take action to move ahead more quickly. We’re strongly committed to working with estate residents on what comes next on later phases on their estate.”

Matthew Cornwall-Jones, chief homes officer at NHG, said: “For us, residents are at the heart of the Aylesbury Estate regeneration and these changes will allow NHG to continue to build high-quality, energy-efficient homes that meet and exceed modern standards, while ensuring long-term social and economic benefits for the community.”