•  Council goes back to building homes for the first time since 1989
•  Company will look to unlock stalled sites in need of development
•  Focus on family homes, employment and apprenticeship opportunities

Sutton Council is setting up its own house building company to develop much needed homes for families in the borough.

With people struggling to get on and move up the housing ladder;  1,249 people on Sutton’s housing waiting list for council housing; and housing prices rising by 10.1% compared to last year*, the council is taking action to build new housing itself for the first time in 25 years.

The development company can build all kinds of council and private rented homes which will include affordable housing and a focus on family homes. There will be a focus on the homes being for Sutton residents only and to qualify they must live in the borough for two years or more.

It will also look to unlock sites where development has stalled because of land hoarding or complex development issues.

The company will be able to use the council’s prudential borrowing powers for cheaper borrowing, as well as giving the council greater flexibility to start projects and create joint ventures. The council will also be applying for Housing Zone status from the Mayor of London which would make certain areas in the borough eligible for financial and other development support.

The development company is one part of a three pronged approach by Sutton Council to help its residents through the current housing crisis.

The council will also build its own council housing, outside of the development company, with up to 140 new council houses across a range of sites including Ludlow Lodge, Wallington, Fellowed Road, Carshalton, and Richmond Green, Beddington. These developments will be for people living in Sutton with the aim that a quarter of them will be family homes. Development partners will be sought this summer to build them.

The council is also working closely with the private sector to encourage housing developments. It set up an inward investment arm called Opportunity Sutton 18 months ago which has already secured 644 new homes across three sites (see notes to editors).

Councillor Jayne McCoy, Chair of Sutton Council’s Housing, Economy, Business Committee, said:

“There is a huge demand for new homes that isn’t being met in our borough and we are determined to do something about it.

“We want to build new council housing and new private housing with a social purpose at its heart. It will give people more choice and a greater chance of getting on or moving up the housing ladder.

“By being involved in the development of new homes, we can stipulate that they are only for Sutton residents and make sure there is a focus on the housing we want such as family homes, rather than expensive studio flats.

“We can also ensure high standards of development, generate funds to reinvest in housing and create new employment and training opportunities in the construction sector. It shows what a council can do, despite ongoing government cuts.”

To stimulate building further, the council will streamline its local development plan to make it more straightforward to bring forward quality developments.

The new developments will not target greenbelt land and the new homes will meet the mayor’s design standards as well as the borough’s own One Planet objectives.

There will also be a focus on job creation and apprenticeships for local people.

The new social housing will take people directly out of expensive temporary accommodation and reduce pressure on council budgets, at a time when the government is making unprecedented cuts to our budgets.