Newham launches affordable housing company

Newham Council launched the company today. It has been set up to purchase affordable units from developers in the borough.

At a launch ceremony this morning, it announced it has secured 211 units for below-market rent at the 800-home Upton Gardens development being built by Barratt London on the site of the Boleyn Ground, the previous home of West Ham United.

The council will let its homes at a range of rents between 40% and 80% of market rates. It aims to build more in the lower bands over time, as well as homes under mayor of London Sadiq Khan’s Rent to Buy product, London Living Rent.

The company will be funded partly through the council’s borrowing powers and also from subsidy from the council.

While more than a third of councils, including Newham, have set up development companies in recent years, most have been aimed at providing market rented or a mix of market and affordable.

This venture is believed to be the first council-owned company set up wholly for affordable housing. Gavin Barwell, housing minister, recently said affordable housing tenants of council-owned companies would have to be offered the Right to Buy, but the government will not legislate to introduce this.

Sir Robin Wales, mayor of Newham, said: “The Boleyn Ground is an iconic site and I want to ensure Newham residents have the opportunity to live there. By purchasing the affordable housing element, rents can be set which are truly affordable.

“A fair system is one in which there is a link between what people earn and what they are asked to pay in housing costs. By establishing that link, we can make sure people are not forced out of Newham because of the housing crisis.”