The ‘Fellowship Square’ scheme is currently under construction in Walthamstow with 433 new homes planned, reports Sebastian Mann, Local Democracy Reporter

Plans for Fellowship Square (credit Waltham Forest Council)

Waltham Forest Council will buy more than 50 new homes in order to rent them out as ‘affordable’ housing for vulnerable residents.

It will acquire 53 new-builds in Hepworth Place, part of the ‘Fellowship Square’ development around the Waltham Forest Town Hall complex, using revenue raised from Right to Buy sales.

The homes in Block C will be available for at-risk residents waiting for a home on the housing register or who currently live in temporary accommodation. The block is made up of seven one-bedroom flats, a combined 40 two-beds, and seven three-beds.

The flats are currently under construction by developer Countryside Properties, but are on track to be finished by November this year.

In total the Fellowship Square development will see 433 new homes built, with 205 of these designated affordable. It won planning approval in September 2021.

By purchasing 53 of these affordable homes directly the council expects to save around £3.5million over the next five years, as it faces intense pressure on its housing sector.

Keeping a family in temporary accommodation costs an average of £259 a week, or around £13,470 a year.

There are currently more than 8,000 people on the council’s housing register, waiting to be allocated a permanent place to live, according to data from February. Around 200 people apply each month and 88% of cases are accepted.

Senior councillors in the borough have called the situation a “significant” housing crisis.

Council director Joe Garrod, who is responsible for neighbourhoods and planning, said: “The 53 new homes will increase the council’s housing stock, providing much-needed housing for council tenants on the housing register and also settled accommodation for families currently in temporary accommodation.”

The acquisition also “protects and expedites” the provision of affordable housing at Fellowship Square, and “improves the viability” of the project for both the council and Countryside.

Ahsan Khan, the cabinet member for housing, approved the scheme at a meeting held behind closed doors last week.

The exact costs have been kept under wraps, but the council says it will pay £8million below what real estate agent Savills considers the open-market value.

Cllr Khan said: “This is an excellent opportunity to provide stable, high-quality housing for local people and families, especially those on the housing register or currently living in temporary accommodation.”

To fund the purchase the council will use money raised from former tenants purchasing social housing through the government’s Right to Buy scheme.

Recent changes in housing regulations mean councils can now put 100% of the revenue raised from Right to Buy sales towards delivering new affordable housing, up from a previous limit of 50%.

Cllr Khan added: “By securing these homes, the council is ensuring that the funds from Right to Buy are put to good use locally, rather than being returned to the central government.”

There is a risk, however, that delays in construction could mean the window to use 100% of Right to Buy sales is partly missed, with the government potentially withdrawing the offer again from March 2026. The council says officers will be attending the site, which is next door to the town hall, to monitor progress.

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