London boroughs to gain wider housing powers under Johnson devolution plan

London boroughs could gain the widest powers over housing budgets of any councils in England under proposals from the capital’s mayor.

Boris Johnson is consulting jointly with London Councils – the representative body for the 33 boroughs – on how he will devolve housing responsibilities to them once the government, as expected, devolves to him the work of the Homes and Communities Agency in the capital.

Boroughs would be able to sign a devolved delivery agreement with the mayor under which they would accept broad objectives in line with his housing strategy and in return would secure housing budget set for three years with wide discretion over how to spend this.

The HCA is responsible for allocating more than 80% of the housing funding for London and the boroughs have complained that they have too little influence over this process.

Johnson said: “I firmly believe we should empower London’s boroughs so that more decisions are taken directly by those in the communities they affect.”

Boroughs will not be required to sign up to the agreements. Those that lack the capacity to take on management of housing budgets, or which choose not to, will be able to continue under the present system.

Jules Pipe, chair of London Councils, said: “Boroughs are firmly of the view that decisions about how housing budgets should be spent are best placed in the hands of boroughs, who understand the complex needs of their local communities.”

The devolved delivery agreements have been piloted in Croydon, Hackney and Westminster.

The consultation can be downloaded here. Responses must be submitted by 1 October.