Key Points
- Lewisham Council has appointed housebuilder The Hill Group as its long-term strategic development partner after a year-long competitive procurement process.
- The agreement will run for 10 years, with an option to extend it by five years, and covers up to £1.5bn in construction delivery.
- The partnership replaces the need to appoint separate developers for individual schemes, with the council aiming to cut bureaucracy and speed up construction.
- Lewisham has more than 10,000 households on its housing register, while nearly 2,500 families are living in temporary accommodation.
- The ownership and funding arrangements will differ between projects. The council will develop and own some affordable homes directly, while The Hill Group will fund others, giving the council the first option to buy them.
- Work on the first developments under the agreement is already under way at Thomas’ Lane Yard in Catford and the Achilles Street Estate in New Cross.
- The agreement also requires The Hill Group to support local jobs and skills training and invest directly in the community.
Lewisham Council (South London News) August 27, 2026 – Lewisham Council has entered into a major long-term strategic development partnership with housebuilder The Hill Group to deliver up to £1.5bn in construction projects and housing regeneration across the borough.
The framework agreement will run for an initial 10-year term, with the contractual option to extend for a further five years. The appointment follows a year-long competitive procurement process involving detailed technical, qualitative, and financial evaluations, alongside structural dialogue with shortlisted bidders.
Under the framework, the local authority is moving away from procuring independent developers for each distinct construction project. Instead, working with a single development partner allows the council to bring forward residential developments and regeneration programmes more quickly and consistently, while retaining direct oversight of quality standards, affordability thresholds, sustainability targets, and delivery timelines.
As reported by construction journalist Aaron Morby of Construction Enquirer, the overall funding structure allows for dynamic ownership models. In certain schemes, Lewisham Council will directly finance, build, and maintain ownership of the affordable housing stock. In alternative development models, The Hill Group will invest directly in the construction, whilst granting the council the right of first refusal to acquire the affordable residential units.
All schemes brought forward under the arrangement will remain subject to standard governance, requiring individual business cases, comprehensive financial assessments, separate council approvals, and formal oversight from a newly established Joint Partnership Delivery Board.
What is the motivation behind the £1.5bn deal?
As reported by trade publication Infrastructure Now, Councillor Daniel Dream, Cabinet Member for Inclusive Regeneration, Planning and Housing Delivery at Lewisham Council, stated that
“With more than 10,000 households on the housing register and nearly 2,500 families in temporary accommodation, we need to build the homes our community needs faster. This partnership cuts red tape and gives the council greater control over quality, affordability and delivery. We are looking forward to working with The Hill Group, an award-winning housebuilder with a proven track record, to deliver the homes, jobs and investment our community needs over the next decade.”
The local authority’s decision to establish a long-term partnership aims to resolve persistent delays associated with individual site procurements. In addition to providing residential accommodation, the agreement legally binds The Hill Group to provide wider community benefits, including local job creation, skills training schemes, educational opportunities, and direct capital investment in targeted neighbourhoods.
How has The Hill Group responded to the appointment?
As reported by BE News, Andy Hill OBE, founder and chief executive of The Hill Group, stated that
“We are delighted to have been selected by Lewisham Council as its strategic development partner and look forward to working together to help deliver the borough’s ambitious housing and regeneration programme. What makes this partnership particularly important is the opportunity to combine our expertise in regeneration, placemaking and delivery with the council’s vision for the future of Lewisham.”
Hill further commented on the operational benefits of long-term frameworks, adding that
“Long-term partnerships such as this create the certainty and alignment needed to unlock technically complex sites, enable more efficient delivery and ensure developments genuinely reflect the needs of local communities. Our track record has been built on successful partnerships with local authorities and housing providers across London and the South East, and we are excited to bring that experience to Lewisham as we begin work on Thomas’ Lane Yard, Achilles Street and future projects across the borough.”
Which initial projects are currently underway under the partnership?
As reported by Building Design & Construction Magazine, the strategic partnership has already encompassed two active flagship regeneration schemes within south-east London:
Thomas’ Lane Yard, Catford
Located in Catford, this development focuses on delivering 113 new affordable homes. The current scheme distribution allocates 39 units specifically for social rent, with the remaining 74 properties designated as shared ownership homes.
Achilles Street Estate Regeneration, New Cross
This £125m estate renewal project in New Cross involves replacing 1950s-built residential structures with 278 new modern homes. The scheme guarantees a minimum overall threshold of 60% to 62% affordable housing across the site. The initial two construction phases will deliver 149 homes, all of which are designated under affordable tenures, including 122 homes built specifically for social rent.
Background of the Lewisham housing partnership development
The 10-year agreement between Lewisham Council and The Hill Group comes against a backdrop of acute housing shortages and financial constraints affecting local authorities across London. Historically, local councils have procured developers on a parcel-by-parcel basis, running separate procurement exercises for every individual site. This method often introduced lengthy procurement delays, varying architectural standards, and elevated legal costs.
To address systemic housing deficits—highlighted by Lewisham’s housing register of over 10,000 households—local governments have increasingly turned to public-private framework models. Strategic partnerships spanning 10 to 15 years allow local authorities to establish shared governance frameworks and supply chain efficiencies while ensuring long-term commitments to local employment and apprenticeships. The model also allows local authorities to maintain statutory planning oversight and retention options on completed properties without bearing 100% of upfront capital risk.
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Prediction: How this development affects key local stakeholders
The establishment of this £1.5bn framework is expected to impact several distinct interest groups within the borough over the coming decade:
- For local residents and housing applicants: Families currently residing in temporary accommodation or on the municipal housing register may see a faster progression into permanent housing. The prioritisation of social rent and shared ownership units—such as the 100% affordable initial phases at Achilles Street—will directly increase local housing stock available below market rates.
- For existing estate residents (Achilles Street and Catford): Tenants living within designated regeneration zones will experience multi-year construction activity, including temporary disruptions, structural realignments, and estate rehousing phases. However, the long-term result will replace aging 1950s infrastructure with modern, energy-efficient housing.
- For local job seekers and businesses: Local workers, apprentices, and subcontractors stand to gain from the contractual social-value commitments. The Hill Group’s obligation to provide training, local supply-chain integration, and employment programs will inject dedicated funding into the borough’s wider economy alongside construction delivery.
