London Housing Board in talks with councils to meet demand by building outside capital

The pilot project, which could see up to 200 homes built across England, aims to bolster the Association of London Government’s LAWN programme, under which London tenants move to other regions, freeing up much-needed social housing in the capital.

The scheme would depend on London and host local authorities striking a deal over nomination rights to the homes built. London councils will not be given 100% of the homes.

Steve Douglas, the Housing Corporation’s London director and a member of the London Housing Board, said: “The idea is to take account of the costs experienced by recipient councils. The money will be for unfunded schemes; the aim is to increase supply.

“The nomination rights would be mixed between the two councils – they would agree a deal. This was the model that has worked in previous deals involving Camden or Newham.”

A number of London boroughs have begun making contact with prospective partner councils for the scheme, which was first mooted in the 2003 London housing strategy.

It is understood that Haringey and Islington – representing the north London sub-region – attended a meeting of the London commuter belt sub-regional councils on 21 October.

A Hertfordshire council source said: “It is much more cost effective for [London councils] to build housing in the commuter belt than in London.

“The London region has developed a nominations protocol for [these potential] developments. That is a formula for the host borough retaining 25% of the nominations with the remaining 75% being shared.”

So far, 1600 people have moved out of London to areas including Stoke and Burnley under the LAWN scheme.

The London Housing Board hopes the incentive of cash for new homes will encourage host councils to receive some of the estimated 35,000 people who wish to use LAWN.