Kerslake Review sets out blueprint for maximising GLA Group housing

• Mayor commits to implement recommendations to enable City Hall and the wider GLA Group to further increase affordable housing delivery in London
• The independent review sets out steps to streamline housing development and enshrine the expectation of a minimum of 50 per cent affordable housing on GLA Group land
• Next steps on City Hall developer are also outlined, with a phased approach of further City Hall housing interventions
• To coincide with the review’s publication, a developer is announced for former Met Driving School site in Colindale, showcasing the kind of GLA group working recommended by Lord Kerslake and achieving 60 per cent affordable housing
• Tackling London’s housing crisis is a top priority for the mayor, and last year he commissioned Lord Kerslake to undertake an independent review to look at how the GLA group could be enabled to build even more homes more quickly.
• Sadiq Khan’s time in office so far has seen record home building, including more council homes started last year than at any time since the 1970s.

The Mayor of London, Sadiq Khan has today committed to implementing the recommendations of a new independent report commissioned to increase the speed and scope of housing delivery on land owned by the Greater London Authority (GLA) Group.

Delivering more new homes for London is a priority for the Mayor, particularly new council and social housing. Huge progress is being made and, following significant Mayoral investment, last year more new council homes were started across London than at any time since the 1970s (1).

The GLA Group (2) makes a significant contribution to housing delivery in London. Since 2016, the group has started construction on more than 17,000 homes on GLA Group land.

The Mayor has repeatedly stated his ambition to build more genuinely affordable homes on surplus public land in London and maximise the number of homes being built on land owned or released by the GLA Group. Lord Kerslake’s Review was a key promise in the Mayor’s 2021 manifesto.

Lord Kerslake’s review, published today, makes 15 recommendations across the following themes:

o Oversight of GLA Group housing delivery

o GLA Group collaboration on housing delivery

o City Hall developer

o LLDC transition

o Finance and funding

The Review’s first recommendation is that ‘the Mayor should mandate a statement of shared policy to confirm priorities for housing delivery on GLA Group land. The Mayor is publishing this Statement of Shared Policy today, which has been endorsed by Deputy Mayors and Chief Executives across the GLA Group.

The Statement of Shared Policy enshrines the minimum expectation of 50 per cent affordable housing on GLA Group sites, confirms the Mayor’s priorities for housing delivery on GLA Group land and reinforces the expectation that all development on GLA Group should be undertaken in accordance with the Mayor’s London Plan policies on good growth, including high sustainability standards. The statement also commits the GLA Group to improving collaboration and consistency in its approach to housing delivery.

Lord Kerslake also set out how the Mayor’s proposals for a City Hall developer can be implemented in two phases. He confirms that a City Hall developer could provide additional development capacity to the sector, to help ‘close the gap’ on future housing supply and would provide greater certainty that the Mayor’s objectives will be prioritised. In the first phase, the report recommends expanding and strengthening the GLA’s housing delivery functions to include increased land acquisition and assembly, an expanded in-house development management function, a more unified approach to small sites delivery, and greater risk-sharing and genuine partnering with London’s existing affordable housing sector. At the same time the groundwork will be laid for a second phase of direct delivery. A new team will be set up in City Hall’s Housing & Land directorate to drive both phases of work on the new City Hall developer. Additional funding for this team was provided for in the Mayor’s 2022-23 GLA Group budget.

There are already strong examples of innovative GLA Group joint-working together to maximise housing development on their own land. Lord Kerslake cites City Hall’s work with the Mayor’s Office for Policing and Crime (MOPAC) to secure high levels of affordable housing on surplus MOPAC land including at the former Peel Centre in Colindale. The shared objectives were to dispose of the land, achieving best value for MOPAC whilst securing delivery of a quality development with 60 per cent affordable housing as part of a portfolio approach, as enabled by the Mayor’s London Plan.

To coincide with the release of the Kerslake Review, it is being announced today that following a competitive procurement process with the London Development Panel, Optivo, in partnership with Countryside, has been selected to develop the sites and will now begin work to deliver more than 800 homes. This will help to complete the wider redevelopment of the site of the former ‘Hendon’ Metropolitan Police training centre and driving school in Colindale.

The Mayor of London, Sadiq Khan said: “Tackling the housing crisis has always been a top priority for me.

“I am proud to have achieved record breaking delivery of genuinely affordable homes during my first term as Mayor. This achievement includes working with boroughs to kick-start a renaissance in council homebuilding, with more council homes started across the capital last year than in any year since the 1970s.

“But I know we must do even more and I’m keen to lead by example through maximising the number of genuinely affordable homes built on land owned by the GLA Group. I thank Lord Kerslake for working with rigour and at pace to conduct his independent Review of GLA Group Housing Delivery. I am confident that this review will lay the path to enable a step-change in how the GLA Group collaborates and delivers new genuinely affordable homes for Londoners.

“I accept the recommendations of Lord Kerslake’s Review of GLA Group Housing Delivery in full and now look forward to redoubling our efforts to build more of the homes Londoner’s need and deserve.”

Lord Bob Kerslake said: “I am delighted to submit the final report on my Review of GLA Group Housing Delivery.

“There can be little argument about the essential need for more new housing and more genuinely affordable housing in London. I hope that my report assists in delivering the Mayor’s housing ambitions. Every one of the members of the GLA Group has a part to play in this.

“This review has been done at pace but thanks to the cooperation I have received across the group and the terrific support from the GLA I believe it has been possible to get to the bottom of the issues and make firm recommendations.

“There is a need for stronger professional leadership, and a more unified, coherent, and streamlined approach. A City Hall developer has real potential to add significant value to London’s housing sector and should be delivered over two stages.”

Lyn Garner, Chief Executive of the London Legacy Development Corporation said: “Housing is a crucial issue for Londoners and the review highlights the importance of affordable housing.

“We welcome the opportunity to work even more closely with colleagues throughout London in continuing to deliver the Mayor’s priorities.”

Graeme Craig, Director of Commercial Development at Transport for London (TfL), said: "We welcome this report, which sets out how development partners across the GLA and Government can work together to deliver a sustainable and affordable housing programme for London.

“The pandemic has had a devastating impact on our finances, and as the report outlines it has impacted our ability to build homes as quickly as we wanted to.

“However, we are now gearing up to take forward development activity as a commercial property company that is wholly owned by TfL. This will allow us to deliver a portfolio of thousands of new homes for the capital - half of which will be affordable - as well as provide a sustainable long-term revenue stream for TfL to reinvest into public transport improvements across the city.”

Paul Hackett, Chief Executive of Optivo, said: “We’re delighted the Mayor of London has chosen our partnership to turn this disused land into a thriving community. And we’re pleased to be partnering with Countryside who have a history of creating sustainable places where people love to live.

“We’re proud that 60% of the homes are affordable, helping Londoners off waiting lists or onto the housing ladder. We’re looking forward to working with Countryside and City Hall to bring these plans to life.”