Haringey Council does not need to team up with a private developer to provide social housing in the borough, according to a panel of councillors.

A report presented to the council’s Overview and Scrutiny Committee last night (March 26) has recommended the use of a wholly council-owned development company to start building housing – contradicting the council’s official position that partnering with private sector developers is the only viable method of delivery.

The report, which was produced by the council’s Housing and Regeneration Scrutiny Panel, sets a target of 1,000 council homes to be built by the council by 2022 through a combination of direct build and the wholly-owned vehicle.

Haringey Council has previously come under fire for the decision to set up a 50-50 joint venture with private firm Lendlease under the Haringey Development Vehicle (HDV).

The council’s official position is that constraints on borrowing mean partnering with a private developer is the only way of raising the money necessary to provide the new homes needed by the borough.

But according to the new report, using a wholly-owned company would allow the council to build homes without being affected by borrowing caps on the Housing Revenue Account.

It would also enable it to retain all of the profits from the sale of the homes, which could then be ploughed back into new housing projects.

The report recommends setting an affordable housing target at 50 per cent – higher than the HDV’s current target of 40 per cent – and allowing only a limited amount to be sold at 80 per cent of market rent.

Councillor Emine Ibrahim, chair of the housing and regeneration scrutiny panel, said: “We can [build 1,000 council homes] because of an ability to borrow at higher levels and not be affected by caps.

“Within that, we thought it really important not to forget that it is only part of the equation. We have to be really firm on affordability targets for developments.”

The Social Housing Scrutiny Report, which received input from academics, professional experts, residents, community groups and others, advises the use of community trusts and housing cooperatives in a bid to ramp up provision of new homes.

It also states that development work should not be allowed to go ahead without a public consultation and a full ballot of residents on affected estates.

The report was approved by the scrutiny committee and will be considered by the cabinet when it meets following local elections on May 3.

Liz Morris, deputy leader of the Liberal Democrats on Haringey Council, commented: "Haringey Liberal Democrats have been advocating a wholly-owned council development company for over a year.

"During that time we've seen Labour dismiss the idea and keep pushing the HDV. Just last month we put forward a budget amendment to fund a 100 per cent council-owned house building company, and every single Labour councillor voted against it.

"The Liberal Democrats have a clear plan and Labour are not only divided but also playing catch up"