The Overview & Scrutiny Committee met on Monday 12 November 2012 to discuss regeneration plans across the borough and receive updates on housing matters. Key areas of discussion included regeneration in Camberwell, Peckham, and Nunhead, as well as the future of council housing stock and the Four Squares estate contract.

Regeneration in Southwark

Councillor Veronica Ward, Cabinet Member for Regeneration South, outlined regeneration priorities for areas including Camberwell, Peckham, and Nunhead. In Camberwell, regeneration efforts will focus on the town centre, library, and leisure centre, with Transport for London (TfL) undertaking a feasibility study on traffic flow and pedestrian access. Concerns were raised about potential impacts on bus routes and cycle safety. Consultation is also underway regarding the design of the Camberwell library.

Plans for Peckham include improvements to the frontage of Peckham Rye station and securing townscape heritage funding. Negotiations with businesses located in front of the station are ongoing, with Councillor Ward stressing the need for careful discussions due to subletting and difficulties in tracing owners. Network Rail is supporting this redevelopment. In Nunhead, discussions are progressing regarding the community centre and new housing, with a pop-up shop on Nunhead Lane serving as a consultation hub.

Regarding the Dulwich Community Hospital site, the NHS has completed its consultation, but analysis of the results has been delayed. The council plans to release a supplementary planning document in January for further consultation. The Director of Regeneration also noted that a strategy report on school places, highlighting significant demand pressures around Camberwell and Peckham over the next decade, would be submitted to the next cabinet meeting.

Housing Commission and Stock Management

Councillor Peter John, Leader of the Council, discussed the establishment of a Housing Commission aimed at addressing the long-term planning of housing. The commission's report is intended to spark a borough-wide and London-wide debate on the future of council housing stock and social housing. The council is investing significantly to ensure its housing stock is warm, dry, and safe, acknowledging underlying issues and the need for careful spending decisions. The Leader indicated that the commission had not proposed increasing the housing stock as an option, citing the substantial investment required simply to maintain the current level. He also highlighted the importance of considering different management options for the stock and the role of leaseholders.

Concerns were raised about contract management, with the Leader referencing the termination of contracts with Morrison and Vangent, stating the council was now on the right trajectory. He suggested exploring alternative management models for housing stock, potentially similar to those used by housing associations, which often carry higher debt levels. While the Leader had previously ruled out selling substantial parts of the housing stock, he clarified that all options presented in the commission's report would be subject to consultation and that he was prepared to be as radical as was necessary.

The committee also discussed the use of empty private properties, with the Head of Major Works reporting that various options were being considered. The Leader indicated that the sale of council voids should be assessed on a case-by-case basis, noting that works on the East Dulwich Estate had been partly funded by such sales, contributing to a mixed community.

The Leader emphasised that Southwark, despite having the highest proportion of council housing in London, could not find all the answers independently and that collaboration with other local authorities was needed. He also stressed the importance of ensuring investment in new housing stock remained within the borough, for instance, through local training schemes, and that the council should be an exemplary employer, having taken on forty apprentices in the past year.

Concerns about a lack of affordable housing in major developments in the north of the borough and the failure to create mixed communities were addressed. The Leader pointed out that 52% of housing in the ward in question was council housing and that mixed communities were fostered through shared use of streets and facilities, not necessarily by housing people in the same blocks. He noted challenges with developments like Neo Bankside, where market rents would not provide genuinely affordable council housing. Ward members were asked to identify potential sites for new council housing in Cathedrals Ward.

Regarding tall buildings, the Leader expressed support for high-quality structures that enhance Southwark and provide financial benefits, public realm contributions, and social infrastructure. Developers must present their case to the planning committee. The impact of national policy changes, including benefit reforms and cuts to social housing funding, was also discussed, with the Leader suggesting that reviewing the council's land holdings and capital receipts could help bridge funding gaps.

Regeneration Developments and Affordability

The Leader discussed the amount of council housing to be included in regeneration developments and the overall tenure balance within the borough. He indicated that a broader conversation with London partners was needed, and the housing commission's report would stimulate debate. Building mixed-income, economically active communities was a key purpose of regeneration, providing better social realms, transport, schools, and leisure centres.

Comparisons of affordable housing proportions in schemes across London were requested. The Leader stated that the proportion of affordable housing negotiated with Lend Lease for the Heygate development compared favourably with other schemes. While commercial sensitivity prevented the release of cash flow statements from partners, members felt greater transparency would eventually be necessary.

Clarification was sought on transport priorities at the Elephant & Castle area, specifically the northern roundabout and the link between the Bakerloo and Northern lines. The Leader confirmed the northern roundabout was a priority for residents, with TfL exploring solutions and funding. Improved ground-level crossings and cycle safety were also stressed.

Updates on the Aylesbury estate regeneration and the provision of additional social rented housing were provided. The council is exploring options to increase council homes at Elephant & Castle, including buying back homes from developers. While consent had been given for a number of social rented and affordable housing units, some members remained concerned that housing was not being replaced quickly enough in the opportunity area.

Some members felt a better deal could have been negotiated with Lend Lease for the Elephant & Castle development. The Leader reminded the committee that the initial heads of terms for the Heygate left the percentage of affordable housing to the planning process, which would likely have resulted in only 7-8%. In contrast, the cabinet agreed to 25% affordable housing in July 2010. He emphasised that local people wanted to see progress and that demolition of the Heygate estate would begin the following summer, with new housing, a leisure centre, and a box park planned. The shopping centre was considered key to the overall perception of Elephant & Castle.

Concerns about predicted shortfalls in primary and secondary school places were acknowledged, with the Leader stating the council had a robust plan to meet demand. The Aylesbury new school was on schedule, and options for the Rotherhithe area were being explored.

Plans for Walworth Road, including a new box park, were updated. The Leader expressed confidence that construction on the Heygate and Phase 1 sites would stimulate economic activity. He also noted few empty units on Walworth Road, and the Director of Regeneration agreed to provide an overview of council-owned or leased properties on the road.

For the Aylesbury estate, the council is seeking a development partner, with four major developers and RSL consortia submitting bids. The selection process would conclude in early 2014 with a shortlist. The Leader confirmed that the involvement of tenants and leaseholders was crucial.

Four Squares Estate Contract Update

Dave Markham, Head of Major Works, reported on the Arup inspection of the Four Squares estate. Tenants and residents were informed on 7 November 2012 that the estate was structurally sound. Arup would provide options to address brickwork issues, and the contractor Apollo would confirm pricing, with officers hoping to keep costs within the existing £19.1m build budget. Members stressed the importance of adhering to this figure due to the potential impact on leaseholders' bills.

Arup had requested the council identify similar blocks for further inspection, with officers believing not all would exhibit brick slippage. Possible solutions include different forms of cladding and tying back brickwork. Arup was also conducting core sampling with Apollo to assess concrete deterioration. A geotechnical survey confirmed that neither the Jubilee Line nor underground water sources were affecting the estate, which is built on piles. The head of major works explained that brickwork and concrete expansion and contraction rates over time could lead to adhesion issues. The strategic director of finance and resources' response to previous concerns about Arup's appointment was also reported. The committee was assured that insurers had been notified and then taken off notice regarding any major structural risk, as no claim could be made at that time.