Public and private sectors must partner more to boost supply in London, research finds

The third type of joint venture identified by the report are limited liability partnerships between local authorities and a strategic development partner.

These occur when local authorities are taking a longer view of development in their area and see both parties put forward development opportunities and jointly decide on completion whether to sell or retain assets.

The report’s authors said local authorities must weigh up which type of model is right for them because “choosing the right type of partnership is crucial to their success”.

They said each model can offer an opportunity to share and mitigate risks, give access to a range of funding sources, specialist skills and expertise, and reduce costs associated with long procurement processes.

The report called on the public and private sector to enter into more partnerships in order to deliver the estimated 66,000 homes per year needed in London.

The proportion of new build homes completed by local authorities in England peaked in 1968, when councils built 57% of new homes compared to 1.2% today.

Meanwhile, the next five-year Affordable Homes Programme that began this year has seen the amount of affordable housing grant available in the capital fall from £4.8bn to £4bn.

“At a time when finances are tight, partnerships have the potential to unlock significant developments and deliver at scale, providing not only more housing but also bringing wider economic and social benefits to an area,” the report said.

Stephanie Pollitt, programme director for housing at London First, said: “The capital needs 66,000 new homes a year, and with no quick fixes on offer, bold action is required if we are to meet that target. Partnerships are not a panacea, but they have the potential to unlock projects of scale and ambition – which are critical if we are to build the homes Londoners need.”

Darren Rodwell, executive member for housing and planning at London Councils, said: “With 165,000 Londoners currently living in temporary accommodation – more than the entire population of cities such as Norwich (143,000), Lancaster (146,000), or Oxford (152,400) – we urgently need to build more homes in the capital.

“Housing partnerships are one of the ways boroughs are working to tackle the housing crisis, at a time when council budgets are under continued pressure. We want every Londoner to have the security of somewhere to call home, but we can only do this with more investment to significantly increase housebuilding.”

Paul Houghton, director – buildings and places at AECOM, said: “If we want to create sustainable, affordable, and quality housing, to a scale that can tackle London’s housing crisis, then both public and private sectors must come together to collaborate. Only then will we create development opportunities that have a long-term legacy, benefiting not just London but setting best practice for the rest of the country.”

Sandeep Singh Bhakar, Public Services Advisory at Grant Thornton UK LLP, said: “With challenge comes innovation; through housing partnerships the industry can seek new and innovative ways to deliver much-needed homes, structure finance and share risk and reward to meet the common aspiration of creating affordable places to live in our communities. Boosting housing supply is a necessity and we’re committed to working with likeminded organisations to explore new ways to meet the government’s housing targets and help ‘build back better’ to create a more sustainable economy.”