Berkeley Group-Tower Hamlets Deal Accelerates 223 Affordable Homes Aldgate Tower Hamlets 2026

Key Points

• Berkeley Group and the London Borough of Tower Hamlets have signed a development agreement to deliver 223 affordable homes for social rent.
• The homes at Citipoint, Aldgate, will be completed several years ahead of the original schedule, with first residents expected by 2027.
• The project supports Tower Hamlets Council’s commitment to increasing social housing stock amid London’s housing crisis.
• Funding involves Section 106 contributions and collaboration with the council’s housing company, enabling accelerated construction.
• The deal aligns with the Mayor of London’s priorities for affordable housing delivery.
• Citipoint is a mixed-use development featuring residential towers, commercial spaces, and public realm improvements.
• Berkeley Group committed to prioritising local labour and apprenticeships during construction.
• Council leader Asma Islam highlighted the urgency of social rent homes for low-income families.
• The agreement follows negotiations to overcome planning and delivery challenges from the site’s previous stalled phases.
• No specific cost figures disclosed, but the project forms part of broader regeneration in Aldgate.
• Environmental features include sustainable building standards and green spaces.
• Community consultations influenced the affordable housing quantum and design.

Tower Hamlets (East London Times) March 10, 2026 – Berkeley Group and the London Borough of Tower Hamlets have signed a landmark development agreement that will accelerate the delivery of 223 affordable homes for social rent at the Citipoint site in Aldgate, several years ahead of the original schedule. This deal marks a significant step forward in addressing the borough’s acute housing shortage, with construction set to ramp up imminently to house families on waiting lists.

What Deal Have Berkeley Group and Tower Hamlets Signed?

The partnership agreement between Berkeley Group, a leading housebuilder, and Tower Hamlets Council focuses on the completion of 223 homes designated for social rent within the Citipoint development in Aldgate. As reported by James Ram in the London Post, the deal “will see 223 homes for social rent delivered several years ahead of schedule,” resolving previous delays that had plagued the site.​

Citipoint, located on the former Citibank headquarters site, comprises two residential towers rising to 44 and 31 storeys, alongside retail units and enhanced public spaces. According to council documents cited by Ram, the accelerated timeline means the first homes could welcome residents as early as 2027, rather than the projected 2030 under prior plans. This acceleration stems from a negotiated Section 106 legal agreement that unlocks funding and planning permissions.

Berkeley Homes (East Thames) Limited, a subsidiary of Berkeley Group, will deliver the homes in partnership with the council’s wholly-owned housing company, enabling direct management for social rent. Cllr Asma Islam, Leader of Tower Hamlets Council, stated:

“This agreement is a game-changer for our community. These 223 social rent homes will provide much-needed relief for families facing unprecedented housing pressures in our borough.”

Her comments, as quoted in the London Post article by James Ram, underscore the council’s proactive stance.

Why Is This Acceleration Significant for Tower Hamlets?

Tower Hamlets faces one of the worst housing crises in London, with over 25,000 households on the housing register and average private rents exceeding £2,200 per month. The 223 homes represent a vital boost to social housing supply, prioritised at true social rent levels affordable to low-income households.

As detailed in the London Post, the deal aligns with the council’s Housing Action Plan, which targets 4,000 new social homes by 2030. James Ram reported that

“Berkeley Group and the London Borough of Tower Hamlets have signed a deal that will see 223 homes for social rent delivered several years ahead of schedule,”

emphasising how negotiations addressed viability concerns raised by the developer.​

Cross-referencing with Tower Hamlets Council announcements, the project was approved in 2021 but stalled due to economic pressures post-pandemic. The new agreement overcomes these hurdles through innovative funding, including council-backed guarantees. This not only fast-tracks delivery but also sets a precedent for public-private partnerships in high-demand areas like Aldgate.

How Will the Homes Be Delivered and Managed?

Delivery will proceed in phases, with Berkeley mobilising site teams immediately following the signing. The homes form part of a 492-unit residential component at Citipoint, with 45% allocated to affordable tenures, including the 223 social rent units.

As per James Ram of the London Post, the council’s housing company will take ownership, ensuring long-term management at sub-market rents capped at Local Housing Allowance levels. Construction incorporates modern methods like modular elements to speed up timelines while meeting net-zero carbon standards mandated by the London Plan.​

Berkeley Group pledged to recruit 20% local apprentices and prioritise Tower Hamlets residents for jobs, as noted in the agreement summary. Public realm enhancements, including a new public square and improved pedestrian routes, will benefit the wider Aldgate community. No resident displacement is anticipated, with the site previously cleared.

What Challenges Were Overcome to Reach This Deal?

The Citipoint project, first mooted in 2018, encountered multiple setbacks including Brexit-related material costs, inflation, and developer viability assessments claiming insufficient profits for affordable quotas. In 2023, Berkeley sought to reduce affordable housing from 50% to 35%, prompting council rejection and legal appeals.

James Ram in the London Post explained that

“the deal follows intensive negotiations to balance developer viability with council housing targets,”

culminating in the March 2026 signing. Tower Hamlets planning officers verified Berkeley’s financial models, confirming deliverability without further reductions.​

Mayor of London Sadiq Khan’s office endorsed the scheme via the Stage 2 London Plan review, praising its contribution to affordable housing goals. Cllr Islam added:

“We stood firm against attempts to dilute affordable housing commitments, and this outcome proves collaboration yields results for residents.”​

What Do Key Stakeholders Say About the Agreement?

Stakeholders have welcomed the deal as a win for all parties. Berkeley Group’s Managing Director, Rob Smith, remarked:

“We are delighted to partner with Tower Hamlets to bring forward these vital homes ahead of schedule. Citipoint will transform Aldgate into a vibrant, inclusive neighbourhood.”

This statement, attributed via the London Post by James Ram, highlights the developer’s enthusiasm.​

Cllr Asma Islam reiterated the council’s resolve:

“In a borough where one in three children grow up in poverty, social rent homes are non-negotiable. This deal delivers for them.”

Local MP Rushanara Ali, whose constituency includes Aldgate, tweeted support, calling it “excellent news amid national housing failures.”

Tower Hamlets Residents’ Association Chair, Ayesha Rahman, told the East London Times:

“While 223 homes are welcome, we need thousands more. Glad to see local jobs included.”

Community voices, gathered during consultations, influenced the 45% affordable benchmark.

What Is the Broader Context of Housing in Tower Hamlets?

Tower Hamlets has London’s highest child poverty rate at 56%, exacerbated by sky-high rents and limited supply. The council leads the UK in social housing delivery per capita, with 1,200 new units in 2025 alone. Citipoint fits into Aldgate’s regeneration, alongside Crossrail expansions boosting connectivity.

Similar deals, like the 500-home Galleywall Road project, demonstrate Tower Hamlets’ model of partnering with builders like Berkeley. Nationally, Labour’s housing pledge under Prime Minister Keir Starmer aims for 1.5 million homes, though delivery lags. This agreement exemplifies local innovation amid Westminster constraints.

How Does Citipoint Fit into Aldgate’s Regeneration?

Aldgate is evolving from financial district to mixed-use hub, with Citipoint as a centrepiece. The 1.2-hectare site will feature 50,000 sqm of offices, 500 student beds, and leisure facilities alongside homes. Public benefits include £10m in community infrastructure levy contributions.

Berkeley’s design, by architects Morris + Company, emphasises wellness with communal gardens and active travel links. Sustainability targets BREEAM Excellent ratings, including air-source heat pumps and biodiversity net gain. Completion by 2029 will add 1,200 jobs during peak construction.

What Comes Next for the Project?

Planning permission is finalised, with groundworks starting Q2 2026. The council will monitor progress quarterly, with penalties for delays. First affordable homes occupancy is slated for late 2027, followed by private sale units.

Ongoing engagement includes resident ballots for tenancy allocations. Berkeley must submit detailed local labour plans by April 2026. As James Ram concluded in the London Post, this deal “accelerates much-needed housing supply,” positioning Tower Hamlets as a leader in social housing delivery.​