Inside Housing – Home – Starts at major London council plummet 96% in one year

“Due to unforeseen economic circumstances, from late 2022, leading to high levels of inflation and borrowing, and associated increased costs in supply chains, we had to pause a number of planned developments. Some work also had to be paused to ensure it complied with new safety regulations,” the spokesperson said.
“It was a very difficult decision, but not to have so done would have been economically irresponsible on behalf of rent- and council tax-payers.”
They added that the council remained committed to delivering its target of 11,000 council homes in Southwark by 2043.
Kieron Williams, leader of Southwark Council, said: “Labour is building more council homes in Southwark than any other council in the country, with over 3,000 built or under construction.
“We’d be building more if this disastrous Tory government hadn’t crashed our economy, sending the cost of building soaring. However, it is complete nonsense to say we’ve stopped building when we have over one and a half thousand new council homes on site being built today.”
Mr Williams added: “If the Lib Dems really cared about building homes people can afford, they would be celebrating our borough’s successes. But it is no surprise they are not when they have not committed to building a single council home in their last three manifestos.”
In March, Southwark Council admitted it needs to “do more” to tackle residents’ concerns after the Liberal Democrats said it should refer itself to the Regulator of Social Housing.
This followed the news in October 2023 that the council had suffered a setback in its plans to build 11,000 new council homes over the next two decades, after it emerged that its housing budget was forecast for a £13.8m deficit.
A report brought to council leaders highlighted that rising inflation and interest rate increases had “started to take their toll” on Southwark’s Housing Revenue Account. The report outlined how the deficit would limit the Southwark’s ability to deliver its pledge of 11,000 new council homes by 2043.
In September, Southwark Council had to scrap a 25-home development because it could not find a way to add a second staircase.



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