London councils handed greater housing autonomy

Three London boroughs are to take part in an affordable housing pilot scheme intended to give them more autonomy and responsibility.

Westminster, Croydon and Hackney have been selected to take part in the programme, which has been approved by the Homes and Communities Agency and the Mayor of London, Boris Johnson.

The 12-month pilot will look at the steps needed to create a London-wide delegated delivery programme. Every London borough would then be offered the opportunity to negotiate a delegated contract for the 2011 investment round.

The Mayor said: “London’s councils have a hugely important part to play in helping us to achieve the levels of affordable housing this city needs. [Through this scheme] we should not only see an increase in the number of homes being built but also that the right sorts of homes are created, in the areas where they are needed most.”

Johnson added that the three councils had been approached to take part as they represented a wide selection of the housing challenges in the capital.

Lobbying organisation London Councils backed the pilot but said it “remains keen to see not just three, but all boroughs given full control over housing investment to ensure they can deliver more affordable housing for Londoners.”

Steve Douglas, Hackney Council’s interim corporate director for neighbourhoods and regeneration, also welcomed the scheme. “Local authorities are ideally positioned to take the lead in working with partners for new housing,” he said. “We would look to the pilot to provide genuine freedoms, and to reduce bureaucracy, not to create another layer.”

The three London boroughs will take part in the project from April 2010.