Under the agreement, Lambeth Council will work with Vistry Group to build the new homes with at least half of them set to be made available to local people as affordable housing, subject to planning permission. At least 70 per cent of the affordable homes will be at social rent.
The new proposals will aim to deliver the first new homes at Denby Court in Kennington, which, subject to planning approval, would see 141 new homes created, of which 50 per cent will be affordable, and work could begin as early as 2026.
Councillor Danny Adilypour, Lambeth’s Deputy Leader and Cabinet Member for Sustainable Growth and New Homes, said: “We’re working flat out to get more homes built in Lambeth. After nearly 15 years of chronic underfunding for social housing, we’re facing a housing crisis that’s hitting our communities hard and putting huge strain on the council’s finances.
“But we’re determined to turn the tide. Nearly a year on from appointing our first delivery partner for 378 new homes to Brixton, with more than 50 per cent affordable homes, I’m pleased that we have now agreed to build on this work with a second development partner.
“This next stage will deliver more than 500 new homes across Lambeth, with work starting as early as next year.
“These schemes aren’t just about building houses – they’re about building thriving, healthy and sustainable communities. They’ll bring forward as many affordable homes as possible, alongside new jobs, training and skill development opportunities which support our growth plan agenda.”
The work has been carried out under Lambeth Council’s New Homes Programme to speed up the delivery of affordable housing in the borough, particularly homes at council level to help more families get off the housing waiting list and into the homes they desperately need.
The six-council owned sites in the programme alongside Denby Court include Larkhall Lane in Stockwell, Knight’s Walk in Kennington, Jonathan and Orsett Street in Vauxhall, Wootton Street in Waterloo and Trinity Rise in Tulse Hill.
Under the evaluation process for the partnership, Vistry Group scored the highest on the New Homes Programme’s key requirements and priorities:
- Maximising housing delivery (over 450 units across initial sites) – Vistry’s proposal has the potential to deliver more than 500 homes across the six sites, subject to planning approval.
- Maximising delivery of affordable homes, achieving at least 35% across the portfolio – The Vistry Group are committed to delivering 50 per cent affordable housing per site, with at least 70 per cent of that for social housing. Building on existing partnerships with Registered Providers and the Greater London Authority to maximise grant funding and viability.
- Delivery of social value, employment and skills opportunities for all communities across the borough – Vistry will produce bespoke plans for each site, tailored to local needs and aligning with Lambeth’s strategies, informed by resident representatives, ensuring community input and oversight on priorities, funding and key community requirements.
Following the award of the contract in August 2025, the Council and Vistry Group will enter an overarching Partnership Agreement to deliver the strategic objectives and minimum requirements across the six sites in Autumn 2025.
Daniel King, London Divisional Chair at Vistry Group, commented:”We’re delighted to strengthen our relationship with Lambeth Council through this important new partnership, building on the success of the Clapham Park regeneration scheme we’re also delivering within this borough.”
“We understand Lambeth Council’s priorities and the vital need for high-quality, affordable homes to address the local housing crisis. This is a fantastic opportunity to deliver over 500 new homes with at least 50% affordable, with a strong focus on social rent for local residents. We’re committed to building much-needed new homes, creating thriving communities, supporting local jobs, skills and training, and delivering positive social impact for residents across Lambeth to benefit from.”
The procurement for the New Homes Hexagon portfolio was carried out under a competitive procedure, which began in January 2025 after a Cabinet Member decision was taken in December 2024. This procurement is one of the key deliverables of the council’s New Homes Programme and the first priority in Lambeth’s improved Housing Strategy. The strategy sets out how the council aims to create more social and affordable homes, improve housing repairs and create healthy, safe neighbourhoods in the borough – which is one of the key missions in the new Lambeth Growth Plan
