Key Points

• Strategic Appointment: Lewisham Council has officially selected housebuilder The Hill Group as its strategic development partner for a 10-year term.
• Substantial Deal Value: The long-term partnership agreement is valued at up to £1.5 billion, with an optional five-year extension included in the agreement terms.
• Procurement Shift: The arrangement concludes a year-long procurement process, shifting the local authority away from individual scheme-by-scheme contractor appointments to a unified long-term procurement model.
• Flexible Delivery Models: Under the governance structure, the council will directly develop and retain ownership of affordable units on some sites, while on other developments Hill Group will invest directly, giving the council first refusal on acquisition.
• Catford Development Underway: Initial schemes under the strategic banner include Thomas’ Lane Yard in Catford, comprising 113 affordable homes (39 for social rent and 74 shared ownership).
• New Cross Regeneration: The partnership also covers the Achilles Street Estate Regeneration in New Cross, which will deliver 278 new homes—122 of which are designated for social rent, guaranteeing a minimum of 62% overall affordable housing.
• Urgent Local Housing Need: Council figures reveal an acute municipal crisis, with more than 10,000 households currently on the local housing register and nearly 2,500 families placed in temporary accommodation.

Lewisham (South London News) August 28, 2026 – Lewisham Council has appointed construction firm The Hill Group to lead a 10-year strategic regeneration partnership worth up to £1.5bn. The long-term agreement follows a comprehensive year-long procurement process designed to replace individual contractor tendering with a streamlined, central development structure across council-owned land.

The partnership, which carries a contractual option to be extended by an additional five years, is structured to deliver multiple residential schemes throughout the London borough. Delivery mechanisms will vary across individual development sites: in certain projects, Lewisham Council will directly fund, construct, and manage affordable housing stock; on other allocated sites, Hill Group will deploy its own capital to fund development, while granting the local authority first refusal to acquire completed affordable homes.

Why Has Lewisham Council Formed a £1.5bn Partnership with Hill Group?

The local authority initiated the strategic procurement strategy to expedite residential construction in response to severe municipal housing shortages. Housing figures for the borough show that more than 10,000 households remain on the council’s waiting list, while nearly 2,500 families are residing in temporary accommodation.

As reported by Daniel Gayne of Housing Today, Daniel Dream, Lewisham Council’s cabinet member for inclusive regeneration, planning, and housing, highlighted the administrative purpose of the framework:

“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.”

The corporate leadership of the housebuilder echoed the strategic necessity of long-term development alignment. As noted by Grant Prior of Construction Enquirer, Andy Hill, founder and chief executive officer of The Hill Group, stated:

“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. 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.”

Which Projects Are Included in the Initial Delivery Phase?

Two major regeneration schemes are already proceeding as the opening components of the decade-long strategic agreement.

Thomas’ Lane Yard, Catford

Located on the site of a municipal car park serving the area, the Thomas’ Lane Yard project involves the construction of 113 affordable homes. The breakdown includes 39 properties allocated for social rent and 74 designated for shared ownership.

Achilles Street Estate Regeneration, New Cross

The larger of the two initial developments involves the partial demolition and reconstruction of the Achilles Street Estate. The project will deliver 278 residential properties, of which 122 are earmarked for social rent. The scheme maintains a mandate requiring a minimum of 62% of all delivered properties to meet affordable definitions. The initial two construction phases will provide 149 homes, all of which fall under affordable housing designations.

Background of the Particular Development

The establishment of the strategic partnership represents a transition in how urban London local authorities manage municipal housing procurement. Historically, councils have tendered contracts on a project-by-project basis, issuing separate invitations to tender for each individual parcel of land or estate regeneration project. While designed to maximize competitive market pricing for single sites, this traditional model often subjected municipal housing departments to repetitive procurement cycles, complex tender disputes, and lengthy legal delays.

Lewisham Council began moving toward a consolidated partner model in late summer 2025 when it published preliminary procurement notices seeking a single master developer capable of scaling operations over a ten-year timeframe. By establishing an umbrella agreement with a single principal housebuilder, the council aims to reduce pre-construction administrative timelines, optimize supply-chain costs, and leverage private capital from Hill Group for complex brownfield site remediation.

The selection of Hill Group follows several years of heightened pressure on South London boroughs regarding housing supply. Rising temporary accommodation costs have placed financial burdens on local authority budgets across Greater London. By establishing pre-agreed terms and shared risk mechanisms, the strategic framework seeks to maintain continuous construction pipelines even during volatile market conditions.

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How This Development Can Affect the Local Community and Stakeholders

The execution of this £1.5bn partnership will impact several distinct groups across the Borough of Lewisham.

Houseseekers and Temporary Accommodation Residents

For households currently on the council’s 10,000-strong waiting list or living in temporary housing, the primary impact is an expected acceleration in the completion of social rent properties. The direct allocation of 122 social homes at Achilles Street and 39 at Thomas’ Lane Yard provides immediate pipeline capacity. However, local demand will continue to exceed immediate capacity, meaning housing queue reductions will occur incrementally over the course of the 10-year framework.

Existing Estate Residents

Residents on estates designated for multi-phase masterplans—such as the Achilles Street Estate—face operational impacts. Phased construction schedules will require managed relocations, decant procedures, and ongoing disruption during construction phases. The strategic framework guarantees long-term oversight via a joint partnership delivery board, which is structured to maintain rehousing commitments for original estate tenants.

First-Time Buyers and Shared Ownership Applicants

The inclusion of shared ownership units, such as the 74 homes built into the Thomas’ Lane Yard layout, offers an alternative entry point for local residents priced out of the private residential sales market. This element provides homeownership opportunities for middle-income households who do not qualify for social rented allocations.

Local Business and Supply Chain Contractors

Subcontractors, tradespeople, and material suppliers within South East London will likely gain from sustained commercial visibility. Rather than competing for isolated, short-term contracts, local firms may access long-term supply chain engagements under Hill Group’s procurement framework across the borough-wide masterplan.