Lewisham chosen as London’s lead borough for national pilot to unlock small sites for affordable and social housing

Announced today, the partnership between the London Borough of Lewisham, Bristol City Council, Sheffield City Council and the Ministry of Housing, Communities and Local Government (MHCLG) will focus on accelerating homebuilding on smaller plots of land in order to deliver more social and affordable housing and reduce local housing waiting lists.  

These smaller plots are often overlooked due to planning and investment barriers but this first of its kind pilot will see the councils, Government and the private sector work together to overcome challenges on council-owned small sites by exploring different funding models and streamlining processes. 

The Small Sites Aggregator, which draws on a concept developed collaboratively by the Lloyds Social Housing Initiative, will be developed during 2025, with the full programme set to launch in 2026. It aims to: 

• Develop small, underutilised brownfield sites already owned by councils, such as dilapidated garage sites 

• Prioritise genuinely affordable and social housing 

• Reduce pressure on temporary accommodation 

• Unlock more inward investment to Lewisham by transferring land to a national financing body that will manage risk and secure private investment 

• Support faster delivery through standardised design, streamlined planning, and modern construction methods 

The long-term goal is to scale the programme nationally to deliver up to 10,000 homes per year. 

In addition, the Council is expecting to adopt our new Local Plan in the summer, which, following extensive consultation, sets out our ambitions for the borough to 2040. In the meantime, we have planning permission in place for around 14,000 homes on sites including Convoys Wharf, which we are urging developers to start work on. Likewise, we’re working hard to secure investment for larger projects, such as Surrey Canal Road and Catford, and the opportunities the Bakerloo Line Extension would bring. 

Councillor James-J Walsh, Cabinet Member for Inclusive Regeneration and Planning, said: 

“Being selected as London’s lead borough is both an honour and recognition of the expertise and trailblazing work we’ve done to tackle the housing crisis, acutely felt by Lewisham residents, by making the most of small and underused sites. I am delighted this new government is acting with the speed and urgency that Britain’s housing crisis needs, understanding the best way to solve it is through real partnership with local authorities.   

“In Lewisham, we have already shown what’s possible at Walsham House and Elderton Road, both former garage sites, and supported by our Small Sites Supplementary Planning Document, which sets out clear expectations for high-quality, locally appropriate development on small plots.   

"With over 11,000 households on our waiting list, this pilot gives us a vital opportunity to accelerate social housing delivery, drive innovation, and shape a national model that puts genuinely affordable homes at the heart of regeneration.” 

For more information contact the Ministry of Housing, Communities and Local Government - GOV.UK and Lewisham Council