The City of London Corporation has abandoned plans to build 3,700 new council homes.
It first announced the target in 2015, but has now backed down following delays and rising costs.
Since 2015, only 62 homes have been completed and the local authority has conceded that only 900 properties are on track for completion by 2025.
In a report on its website, published over the summer, Simon Cribbens of the community and children’s services department said: “The complexity, and subsequent timeline, of bringing some significant sites forward for development is such that this target will not be completed within the timescale set.”
The local authority said its budget for building new homes had come under pressure due to “investment commitments” following an audit into the condition of its housing stock and the need to retrofit fire safety measures following the Grenfell Tower disaster.
However, it added that “the greatest potential for delivery” was at its historic markets – Billingsgate, Smithfield and New Spitalfields.
As EG reported in August, the City of London Corporation plans to relocate and consolidate the markets under one roof and has appointed Lambert Smith Hampton to look for a 100-acre site.
However, the move requires consultation and parliamentary approval.
A City of London Corporation spokesperson said: “This is a public report which shows we are committed to transparency and openness. It also shows we are developing a range of policies to ensure we deliver 3,700 extra homes much needed by Londoners as soon as possible.
“We are proud to be one of the most highly-rated social landlords in the country already providing thousands of homes across the City of London and six London boroughs.”
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