Red Clover Gardens

The future Red Clover Gardens has been agreed. Discover how we are providing much needed housing for our residents.

The council has reached an agreement on the future of Red Clover Gardens that gets the best value for the investment on behalf of our residents, whilst providing much needed housing.


Red Clover Gardens in Coulsdon has five blocks and a total of 157 homes. Brick by Brick developed the scheme and has sold the whole development to Regen Capital for £38m. 


We have taken a long lease for 85 homes and is sub-letting them to a regulated housing association, Mears. This arrangement ensures that these homes remain dedicated to affordable housing, for those whose needs are not met by the private sector and who do not qualify for social housing.


Croydon will retain 100% nomination rights, which means we can nominate residents currently in temporary accommodation into these homes whenever they are vacated for the next 50 years.


This agreement is projected to save the council £43.7m over the next 50 years, as we move away from expensive private sector landlord properties, whilst ensuring good quality affordable homes are available for those who need them. 


The council will not pay any money upfront for the leased properties. We will have two years rent free and will have the option to buy the blocks at the end of the 50-year lease for £1. 


Regen Capital has acquired the freehold of the whole development and they will either rent or sell the remaining 72 private homes.


Mears will be fully responsible for day-to-day management of the blocks, including all the tenancies, whilst Regen Capital will be responsible for the upkeep and maintenance of the outside spaces and green areas on the estate, including the landscaping.


We have been working towards this agreement for some time and wanted to finalise it as soon as was possible so that the homes could be brought into use for residents who need accommodation. 


Brick by Brick was set up in 2016 to build new homes in the borough and deliver dividends to the council. Brick by Brick’s estimated losses of around £68m have contributed to the council’s general fund debt, and the council took the decision in 2021 to stop any new projects being delivered by the company.


The sale of Red Clover Gardens was the last major milestone before the council takes steps to prepare Brick by Brick for solvent liquidation, as agreed at Cabinet in February 2024.