Devolution of housing powers

A new London settlement

In August, London Councils, in partnership with Mayor of London unveiled proposals for a significant devolution package.

This 'Framework for Devolved Delivery' will give boroughs greater autonomy over their housing budgets, place them at the forefront of negotiations with private developers and housing association, and give them more responsibility to ensure the housing needs of their resident communities are addressed.

The proposed wider transfer of powers from Whitehall to London would see the Mayor and the Homes and Communities Agency (HCA) London Board (which includes borough representatives) agree an indicative budget for boroughs, allowing them to allocate this funding in line with both London-wide and individual priorities.

Devolved Delivery Agreements, which could confirm an agreed housing budget for these boroughs for the duration of the next spending round, due to start in April 2011. In turn, these boroughs will agree a broad set of outcomes with the Mayor to ensure local and London-wide housing needs are met, and have in place housing policies that meet the objectives of the London Housing Strategy Opens in a new window. Entering into a Devolved Delivery Agreement will be an entirely voluntary process, and boroughs choosing not to participate will continue with existing investment arrangements.

London Councils has long campaigned for decisions about housing spending decisions to be placed directly in the hands of boroughs, who understand the complex needs of their local communities. The proposed arrangements follow long-term discussions between London Councils, the Mayor, the HCA and the Department of Communities and Local Government, and are only one example of the way that London’s local and regional government are working together to develop and deliver innovative devolution plans to improve the lives of Londoners. We expect the arrangements to be confirmed shortly as part of the Government’s forthcoming Decentralisation and Localism Bill.