Haringey Council says it has found savings of 14% on the cost of building 3,000 new homes, reports Grace Howarth, Local Democracy Reporter

Haringey Council is standing by its ambitious housebuilding target – while making cuts to the programme’s cost.

The local authority has previously set out its plan to deliver 3,000 new homes for council rent by 2031. By the end of 2024 it predicts just under 700 households will have moved into newly-built homes as part of the scheme.

Developments include Hale Wharf and St Ann’s in Tottenham, which will deliver 191 and 131 new homes for the council respectively. The recently green-lit Mecca Bingo site in Wood Green will provide 78 new council homes.

The cost of the scheme is supplemented by a significant grant subsidy from the Greater London Authority (GLA). A new report states the anticipated capital spend to 2030 would be £594m, of which £150m is set to be subsidised.

Discussing the budget at a housing, planning and development scrutiny panel last night (Monday 16th), chair Alexandra Worrell asked how a 14% capital expenditure reduction has been achieved while still promising to deliver on 3,000 homes.

Robbie Erbmann, assistant director for housing, said there had been a reduction in construction costs over the last year.

He said: “We’ve looked through every scheme, looking at designs, looking at the value of engineering; one particular thing that’s saving quite a lot of money is previously the price of steel was very high, and concrete was low, [but] that’s flipped.

“So moving away from reinforced concrete frames to steel frames or masonry builds is saving us enormous sums on the programme.”

Robbie said things were liable to change if construction costs went up again, but at the moment the programme felt “very deliverable”.

Cllr Worrell asked for assurances that there would not be any “reduction in quality and design of buildings”.

Robbie said: “Most of the change in the schemes you wouldn’t notice from inside the flats. We’re not really looking at different quality, we’re just looking at a more standardised approach.

“So this means people are still going to get really good kitchens, for example, but they’ll last longer and be easier to maintain for our teams.”

Meanwhile, the report also described rising repair costs on the council’s existing housing stock as a “significant strain” on its revenue budget. Just over 20% of the total expected expenditure on housing for 2025/26, of £144m, comprises of repair costs of £31.5m.

Other significant housing budget pressures include an increase in damp and mould cases and rising numbers of families living in temporary accommodation.

But the council says its spending both in terms of investing in existing stock and new builds had “financial sustainability”. It estimates £110milllion will need to be invested by the end of 2028 in order to ensure all homes meet decent standards.

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