A SIMMERING row between the Town Hall and the University College Hospital over social housing which never got built was revealed at a public meeting on how to deal with the capital’s homes crisis.

The hospital in Euston Road was accused of failing to honour a 10-year-old commitment to build 44 social housing homes in Fitzrovia.

The housing was meant to be provided as part of a planning deal between UCLH and Camden Council struck in 2005 when the hospital was redeveloped.

Council chiefs say they recognise public frustration that the homes have still not been built, but that chasing the hospital through the courts would be one publicly funded institution fighting another.

Speaking at a packed public meeting in the British Library on Friday – organised by new Holborn and St Pancras MP Sir Keir Starmer – the Charlotte Street Association’s Max Neufeld said the inaction was “deplorable” as there was no other publicly owned land that could be developed in the area. 

He said: “All the chance we get for social housing is through these Section 106 agreements. Camden’s planning department is in disarray – why has this not been resolved?”

The event was meant to be polling opinion from housing activists, politicians and experts to identify “practical steps that can be taken to alleviate the problems”. 

Town Hall leader Cllr Sarah Hayward told the meeting: “What was agreed was that if they didn’t build it we would be able to purchase the site off them for £1. If we enforce that it would be one publicly funded taxpayer institution taking on another publicly funded institution. We are trying not to do that as we don’t want to line the lawyers’ pockets.

“The more we do that the less affordable housing we will get. We will get to the end of our tether before we line the lawyers’ pockets.”

Housing expert Jim Monaghan added: “It isn’t sufficient to say that. Ten years we have been waiting for this. Why hasn’t the council done something about this?” 

The land is at the front of a now listed former workhouse in Cleveland Street, which is still waiting to be developed.

The hospital has said the £1 buy-back clause had frightened off developers and a more “industry acceptable” agreement was needed. 

It also argues that it has built 20 affordable homes on another of its sites in Fitzrovia, which should reduce the number of homes the council wants it to build.

Mr Starmer said it all sounded like an “interesting dispute” and that he wanted to see “more transparency” in planning decisions. He said he also wanted to explore a new land value tax and setting up community land trusts.