Greenwich to cut council housing at Woolwich leisure centre-related development

Greenwich Council’s Cabinet look set to axe all proposed council housing in a 482-home scheme in Woolwich proposed as part of the town centre leisure centre project.

While the authority have been quick to put out much PR recently about the leisure centre this news will be slipped out quietly, though will cause enormous controversy given the borough now has more than 2,000 thousands households in expensive temporary accommodation.

In addition more than 20,000 are on the council waiting list.

Land behind the new leisure centre has also seen businesses vacated. The council say a Registered Provider – likely a Housing Association – will take on the affordable homes.

That seems rather odd. Why is the authority spending large amounts to buy full price homes off Berkeley Homes in Woolwich rather than increase funding for council homes on its very own development if viability is at risk according to its private development partner Hill? That should still provide better value given Berkeley Homes sell 2-bed flats for circa £700k with a hefty 20 per cent profit margin.

In turn Housing Associations could use funds for the council site on S106-related affordable housing at other developments including those held up through a lack of Registered Housing partner.

So while this move does result in new council and social homes it’s far from clear it’s the best value – and maximising new housing for available funding.

Controversy

Just 27 net new council homes was already a controversially low amount for the site and comprised just five per cent of the total.

This all comes at a time when a Labour government elected a year ago would be expected to support a Labour council in building new council homes, yet so far the new government have announced sending lower than the prior Tory government. See this excellent Centre for Cities analysis.

Famously New Labour between 1997 and 2010 built almost no council homes across the country and were bettered by both the previous and successor Tory government – and they oversaw far fewer than for decades post-war.

We could well be heading back to that again.

Buying not building

As stated Greenwich will buy now homes from Berkeley elsewhere in Woolwich at full market rate – after Berkeley take their 20 per cent profit margin.

Buying rather than building homes also sees experience built up through Greenwich Council’s excellent Greenwich Builds programme of building new council homes lost. The 1,750-home project certainly had some bumps in the road including issues with modular homes in Greenwich – but so have private developers.

Is the solution to simply give up or alter building methods? For Greenwich it seems give up and pay top dollar to private developers.

Ultimately we have an issue where central government are not supporting new council housebuilding despite spiralling need and costs for temporary housing and housing benefits paying extortionate private rents across Greenwich, London and beyond. A Labour government might be expected to increase funding enabling more homes to be built on public land at council tenure rather than all being cut.

Then locally many millions heading to private developer Berkeley Homes. Is this the best use of taxpayer money?

It’s a terrible look for Labour locally and nationally – with the housing development seeing cuts in Housing Minister Matt Pennycook’s own constituency.

It remains to be seen what happens with the current Waterfront leisure centre located on prime land beside the Thames. Will the council sell to a private developer – to plug the gap resulting from high temporary housing costs – and in turn see zero council homes?