Lewisham Council has appointed The Hill Group as its strategic development partner until 2036, starting with 113 affordable homes in Catford and 278 homes at Achilles Street.

Lewisham Council has chosen The Hill Group as its strategic development partner for the next ten years. The agreement can cover up to £1.5 billion of construction and can be extended by a further five years, the council announced on 26 August.

The idea is to stop procuring a developer scheme by scheme. Instead the council and Hill will bring forward council-owned sites together, with the council keeping what it calls “greater control over quality, affordability, sustainability and delivery timescales”.

The first two projects are already in the pipeline:

  • Thomas’ Lane Yard, Catford: 113 affordable homes, 39 for social rent and 74 shared ownership
  • Achilles Street estate, New Cross: 278 homes, 122 of them for social rent, with at least 62 per cent affordable overall

Why the council wanted one partner

The council’s case rests on two numbers it repeats in the announcement: more than 10,000 households on its housing register and 2,450 households in temporary accommodation.

The partnership allows two models. On some sites the council will develop and own the affordable homes itself. On others Hill will invest, and the council gets first refusal on buying the affordable homes.

Cllr Daniel Dream, Cabinet Member for Inclusive Regeneration, Planning and Housing Delivery, said the deal “cuts red tape and gives the Council greater control over quality, affordability and delivery”. Andy Hill OBE, Hill’s founder and chief executive, said long-term partnerships “create the certainty and alignment needed to unlock technically complex sites”.

What the tender said, and what changed

The council went to market a year ago. Its tender notice of 19 August 2025 put the estimated value at £1.85 billion excluding VAT, with contract dates of 16 June 2026 to 15 June 2036 and a possible extension to 2041. The council’s own announcement of the search, published on 8 September 2025, used the same figure: a programme “valued at up to £1.85 billion”.

This week’s announcement gives £1.5 billion. The council has not explained the difference. Both figures are ceilings rather than commitments; the tender describes the value as an estimate, and the announcement says the agreement “can span up to” the sum.

The tender also set a shortlisting deadline of 22 September 2025 and said the appointment would be approved by the Mayor and Cabinet in mid-2026. The announcement says the appointment followed “a year-long procurement process”.

Bar chart of the two schemes named in the Hill partnership: Thomas' Lane Yard, Catford, 113 homes, all affordable, 39 social rent and 74 shared ownership; Achilles Street estate, New Cross, 278 homes, 122 social rent and 156 other tenures, at least 62 per cent affordable
Both schemes already hold planning permission. The tenure split is as the council published it.

The two schemes already have permission

Neither project is waiting on planning.

Thomas’ Lane Yard is the council car park off Thomas’ Lane in Catford, the road that serves Milford Towers. The application, DC/24/137934, went to committee on 29 April 2025 and permission was issued on 27 June 2025. It allows demolition of the existing buildings and two new buildings of homes with flexible commercial space at ground level.

Achilles Street is the bigger job. Application DC/25/141160 covers the demolition of the estate, including Azalea House, Fenton House and Austin House, and 355 to 383 New Cross Road. Five new buildings replace them, with new pedestrian and cycle access to Fordham Park. It went to committee on 2 December 2025 and permission was issued on 12 February 2026. The council says the first two phases will provide 149 homes, all of them affordable.

What it means for you

  • On the housing register: the council’s stated aim is faster delivery of affordable homes. The first social rent homes will come from Thomas’ Lane Yard (39) and the early phases of Achilles Street (part of 122).
  • Living on or near Achilles Street: the demolition and rebuild is a phased scheme. The permission is granted; the partnership is about who builds it and how it is funded. Watch the planning register for the reserved matters and condition discharges that fix the timetable.
  • In Catford: Thomas’ Lane Yard replaces a council car park. If you park there, our parking in Lewisham guide lists the alternatives.
  • As a council taxpayer: £1.5 billion is the size of the pipe, not a bill. Each scheme still needs its own business case and council approval, and on some sites Hill, not the council, puts up the money.

We will report the first Cabinet decision that commits a named site under the partnership.

Sources