Council housebuilding ramps up to hit new targets

Council housebuilding is on the rise, with local authorities pushing through their own housing developments as the Government targets 1.5 million new homes in the current parliament.

Exclusive construction industry research by Glenigan identified planning applications to build nearly 3,200 homes were submitted by local authorities across the UK in 2024.

Government changes to the Right to Buy programme, which allowed tenants to buy their council houses and depleted the national stock, are expected to provide a stimulus for new projects.

Glenigan economics director Allan Wilén explains: “The Government is reducing the discounts on right to buy sales, with local authorities able to retain full receipts from any sales to fund new social housing.”

Top councils

Birmingham City Council applied to build the largest number of new homes in 2024. The council is developing 3,000 homes in the Birmingham Smithfield development (pictured) and proposals for new homes in phases of this scheme helped secure the top spot in Glenigan’s research (Project ID: 15321175).

Source: Glenigan

Aberdeen City Council is in fourth place with plans for the development of 333 homes on the site of the former Aberdeen Exhibition and Conference Centre on Exhibition Avenue (Project ID: 24249198), but the Top 10 is dominated by boroughs in London.

Barnet and Newham are placed second and third, while six of the Top 10 most active councils in terms of residential planning activity are London boroughs.

Barnet applied last year to build 359 units at the Riverside Approach scheme (Project ID: 24338536). The UK arm of French contractor Bouygues recruited to carry out the construction work, which – depending on planning approval – could start in 2026.

The Mayor of London Sadiq Khan wants 40,000 new council homes built by 2030 in the Capital, where development is funded through the Mayor’s Affordable Homes Programme that runs from 2021 to 2026.

Glenigan’s research shows this is stimulating planning activity. Council housebuilding is particularly strong in the Capital, with eight of the Top 15 councils based in London and 46% of new homes proposed in detailed planning applications during 2024 coming from the city.

London activity

Two London boroughs – Tower Hamlets and Wandsworth – were the most active in terms of planning applications for new homes, each submitting five applications during 2024.

Wandsworth’s proposals range from the demolition of garages at Aubyn Square to make way for a dozen flats (Project ID: 24036494) to 21 homes on Wandsworth High Street (Project ID: B 24036510).

Tower Hamlets’ plans range from 29 flats as part of a £55 million redevelopment of St George’s Leisure Centre (Project ID: 24344721) to 31 flats at Cressy Place (Project ID: 24321706)

Teaming up

Councils are also linking up with the private sector for new developments.

In London, Wandsworth Council is working with housebuilder Taylor Wimpey and developer Winstanley and York Road Regeneration LLP on the Winstanley & York Road Estate Regeneration scheme (Project ID: 20331356).

Westminster City Council has teamed up with Mount Anvil for a redevelopment of three sites at Church Street which will deliver a total of 1,124 new homes (Project ID: 21103886) and Newham is working with Pickstock Group to develop 357 units on Stratford High Street (Project ID: 24090052).

After years typified by a lack of activity, Council housebuilding is finally gaining momentum, providing new opportunities for the industry.