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London borough sets up development company to build first homes in 25 years
A London borough is developing its first council homes in 25 years and setting up a development company to build properties of all tenures.
Sutton Council new homes
Sutton Council will build up to 140 new council homes across a range of sites, with the aim that a quarter will be family homes, after seeking development partners this summer.
The local authority is also setting up a house building company to develop council and private rented homes with a focus on providing homes for Sutton residents who have lived in the borough for two or more years.
The company, which will use the council’s prudential borrowing powers to access cheaper borrowing, will look to unlock sites where development has stalled.
The council will apply for Housing Zone status from the mayor of London, which would make areas of the borough eligible for financial and development support.
There are 1,249 people awaiting council housing in Sutton and new social housing will help cut the local authority’s bill for temporary accommodation. Jayne McCoy, chair of Sutton Council’s housing, economy and business committee, said the local authority was determined to do something about the ‘huge demand’ for new homes that was not being met.
She said: ‘We want to build new council housing and new private housing with a social purpose at its heart. It will give people more choice and a greater chance of getting on or moving up the housing ladder.
By being involved in the development of new homes, we can stipulate that they are only for Sutton residents
Jayne McCoy, chair of Sutton Council’s housing, economy and business committee
‘By being involved in the development of new homes, we can stipulate that they are only for Sutton residents and make sure there is a focus on the housing we want such as family homes, rather than expensive studio flats.
‘We can also ensure high standards of development, generate funds to reinvest in housing and create new employment and training opportunities in the construction sector. It shows what a council can do, despite ongoing government cuts.’
As part of its strategy to work with the private sector to encourage housing developments, the council set up an inward investment arm, Opportunity Sutton, 18 months ago. To date, this has secured 644 new homes across three sites.
