Inner London borough to keep keyworkers local with a pilot affordable housing model

15 July 2024

• Southwark Council is tackling London’s housing crisis by building new affordable keyworker homes.
• Around 100 homes at capped rents will be delivered with a development partner.
• The former Beormund Community Centre will also be replaced following conversations with the local community and a commitment from the council.

Southwark Council is embarking on a new scheme to deliver affordable keyworker homes in a first for the borough.

The council will be building around 100 new affordable homes in Bermondsey for keyworkers via a development agreement.

A site at 177 Abbey Street has already been identified by the council. Its central location means keyworkers, such as health and social care staff, and teachers, will be next to Zone 1, close to good public transport links, and within walking distance to some of Southwark’s primary service sectors.

The scheme, which is expected to start on site in 2026, will also include a new replacement space for the much-loved Beormund Community Centre in Bermondsey following a commitment from the council. Thanks to the initiative of local residents, elements from the former centre – light fixings and handrails – were salvaged prior to demolition and it is hoped these can be re-used in the new building from which community events and activities will run once again.

A development partner will be procured to deliver the scheme in line with the council’s objectives. They will be responsible for designing a scheme that meets the brief, construction, and then managing the building and tenancies over a 40-year lease.

All key worker homes will be short-let tenancies in perpetuity (as opposed to a shared ownership model).

The short-let tenancies will be offered on a rolling basis with rents capped at London Living Rent levels, as set by the Mayor of London, with rents pegged at one-third of local average incomes.

The developer will draw from the council’s list of eligible tenants on a first-refusal basis.

Cllr Helen Dennis, Cabinet Member for New Homes and Sustainable Development, said: “Keyworkers are the backbone of our city, but now it’s harder than ever to find affordable housing within easy reach of work for many teachers, social care staff and healthcare workers, to name a few.

“In Southwark, we promised we would look after the keyworkers who look after us by building them dedicated housing that was genuinely affordable. But councils have long been at the mercy of a broken financing system after the policy choices of our last government.

“We are excited to work closely with a development partner on the first 100 of many more affordable keyworker homes for Southwark. We know there is market appetite for this project and the demand for these types of homes will only increase in the coming years. This first site’s location is ideal for our borough’s keyworkers, with easy links to many of our primary frontline services.

“We are delighted that a new community venue will be re-provided for Bermondsey residents alongside our affordable keyworker homes. We know how much of a social anchor the former Beormund Community Centre was and it’s exciting the new venue build upon this legacy to the benefit of current and future residents who move into the key worker homes.”

The project delivers on the council’s commitment to start 500 affordable homes for keyworkers by 2026.

To read the council’s full report on affordable key worker homes at 177 Abbey Street, visit their website. The report is going to the council’s Cabinet for approval on Monday 22 July.

Page last updated: 15 July 2024