Southwark Council is taking significant steps forward with an innovative housing initiative designed to assist residents who find themselves caught between social housing eligibility and the prohibitive costs of the private market. The borough is set to develop its first Community Land Trust (CLT), a pioneering model that promises to deliver genuinely affordable homes by linking property prices directly to local average incomes, rather than the volatile existing house prices in the area.
A New Approach to Affordable Housing in South London
This groundbreaking project, which was discussed and approved during a recent meeting of Southwark's Cabinet, aims to address a critical gap in the housing market. It specifically targets individuals and families who do not qualify for social housing but are nonetheless priced out of the borough due to soaring rental and purchase costs. The council has been collaborating closely with Peckham Citizens and a dedicated community steering group to bring this vision to life, with London CLT serving as the preferred partner for the development.
Site Selection and Initial Proposals
The proposed location for this initiative is a site on the New James Court Estate on Scylla Road in Peckham, currently occupied by a row of 27 garages. Through the expertise of London CLT, initial design proposals have been crafted, indicating that the site has the potential to accommodate 12 new homes. These properties would all be available for purchase, featuring a diverse mix of one to four-bedroom units, which is notably unique for a scheme of this modest size.
However, before any construction can commence, the existing garages will need to be emptied and subsequently demolished to make way for the new development. The council has emphasised the importance of further engagement with current garage occupants to ensure a smooth transition. The land disposal process, which was agreed upon by cabinet members, is a crucial step that will enable London CLT to continue refining their proposals and eventually seek the necessary planning consent.
Political Support and Model Inspiration
Councillor Helen Dennis, Cabinet Member for New Homes and Sustainable Development at Southwark Council, expressed strong support for the project. She highlighted the council's unwavering commitment to delivering social rent homes through its direct delivery programme, while also acknowledging the pressing need for alternative solutions. "This proposal, though initially a small pilot, is a really innovative one," Cllr Dennis remarked. "It helps fill that gap for people who aren't going to access social housing but can't afford to live in the borough otherwise."
The model draws inspiration from successful CLT projects already implemented by London CLT in other parts of the capital, such as Citizens House in Lewisham and St Clements in Mile End. In these schemes, property values are permanently tied to local incomes, creating a sustainable and radical approach to affordable housing that prevents future price inflation and ensures long-term affordability for residents.
Community-Driven Development
Oliver Bulleid, Executive Director at London CLT, underscored the community-centric nature of the project, noting that it has been approximately a decade in the making. "This is a project that's probably about 10 years in the making of the community coming together and looking for affordable homes for people who are priced out," he explained. "Often, these are individuals who've grown up in the area but can't afford to stay and don't qualify for social rent. It's an amazing project and we're very excited to be taking it forward."
The final scheme is still subject to further design development, comprehensive community consultation, and rigorous planning processes. These steps are essential to assess the viability of the project and ensure it delivers the maximum possible affordable housing benefit. The proposed land disposal is anticipated to be finalised in early summer 2026, with a planning application expected to be submitted by the end of that same year.
This initiative represents a bold and community-focused response to the ongoing housing crisis in London, offering a potential blueprint for other boroughs grappling with similar challenges. By prioritising local incomes over market rates, Southwark Council and its partners are paving the way for a more inclusive and sustainable housing future in the capital.
