West London Council's Self-Critique Reveals Systemic Housing Programme Failures
A West London council has delivered a remarkably frank assessment of its own shortcomings in delivering new housing, admitting that multiple errors in planning, contractor selection, and financial management have led to significant delays and cost overruns. Kensington and Chelsea Council's New Homes Programme Lessons Learnt report presents a comprehensive catalogue of failures affecting its ambitious plan to construct 600 new residences, including 300 at social rent levels.
Financial Miscalculations and External Pressures
The council's report reveals that initial cost estimates for the housing programme were approximately 40 percent lower than required, primarily because they failed to account for essential contingencies and professional fees. This fundamental miscalculation created immediate financial strain as projects progressed.
External factors including regulatory changes, post-pandemic inflation, and industry-wide capacity constraints further exacerbated the financial challenges. The council specifically cited economic conditions resulting from the war in Ukraine and the lingering effects of Covid-19 as contributing to what it described as "exceptional" circumstances affecting construction costs.
Contractor Problems and Management Deficiencies
The report identifies serious issues with contractor procurement and management, stating that the council's approach was "not always consistently aligned with the programme's risk profile." This resulted in the replacement of one building firm and what the council described as a "prolonged and challenging" relationship with another contractor.
Specific problems included:
- Insufficiently robust requirements placed on contractors during early stages
- Failure to resolve title and third-party issues before engaging contractors
- High staff turnover within the delivery team significantly affecting progress
- Over-reliance on private consultants who delivered "unsatisfactory performance"
Design and Specification Issues
The council's commitment to delivering high-quality social housing created unexpected complications. The report notes that "tenure-blind" homes - where social and private housing are indistinguishable - resulted in spiralling costs. Additional expenses arose from planning requirements mandating specific materials like high-cost bricks and particular colour schemes.
Other design-related problems included:
- "Weak" project management during design phases leading to "overspecification" of flats
- Incomplete design-to-cost principles and maintenance documentation
- Implementation of a combined heat and power system requiring basement installation
- Insufficient focus on buildability and compliance reviews before procurement
Resident Experiences and Technical Problems
The completed first phase of the programme, consisting of 98 homes across three sites, has already revealed significant issues for residents. Problems documented include:
- Damp and mould issues in multiple developments
- Ventilation system failures requiring specialist contractor intervention
- Heating system configuration problems
- Fire alarm system requiring reconfiguration
At Kelso Cochrane House, residents reported homes "riddled with mould" according to Local Democracy Reporting Service visits. The council attributed some resident difficulties to unfamiliarity with new building systems, though acknowledged initial system configuration problems and operational teething issues.
Programme Status and Future Measures
Since its 2018 launch, the New Homes Programme has completed just one of three planned phases, with a second phase projected for completion by summer 2026. The council has recently announced a pause to the final phase while exploring more cost-effective delivery methods.
In response to the identified failures, Kensington and Chelsea Council has implemented several changes to improve oversight and management of construction projects. The authority plans to commission an independent audit of phases one and two, with findings expected in late spring 2027.
The council stated: "Given the long-term nature of the New Homes Programme and its exposure to financial, delivery and market risks, independent scrutiny will provide confidence that improvements are being embedded effectively." The Housing and Communities Select Committee will review the damning findings at their scheduled meeting.
