Nearly 150 properties that have been approved to be built in Mitcham will be bought by Merton Council for use as social housing, thanks to plans approved by the council’s Cabinet this week.

The planned development at the old Mitcham Gasworks had been stalled and was unable to progress. The decision means the development will now go ahead and deliver hundreds of new homes both for social housing and for private sale.

Additionally, because the council has secured funding from the Greater London Authority to help buy nearly a quarter of the homes, work on site will start sooner than planned – and the homes will be ready for residents to move into sooner.

Leader of Merton Council, Councillor Ross Garrod said: “Merton Council has pledged to create hundreds of new council homes and affordable properties to help tackle the housing crisis locally. This intervention by the council does just that.

“By buying these homes at Mitcham Gasworks, we are not only securing nearly 150 good-quality and energy efficient council owned homes for local people, but we are also ensuring that a stalled development can now progress and deliver the homes sooner than anticipated.”

The homes will be built by St. William, part of Berkeley Homes Group. When finished, around a quarter will be bought and managed by the council – and rented to local people in need of housing.

Councillor Andrew Judge, Cabinet Member for Housing and Sustainable Development said: “I’m delighted that we have secured the support of the Greater London Authority to help us in purchasing these homes which will benefit local people in Merton on the housing waiting list. This partnership is part of a collective commitment to rise to the challenge set by the Government to deliver 1.5 million homes in London and across the country by 2029.”

The housing crisis has been caused by factors outside the council’s control – such as rising private rents. As a result, there are more than 10,000 households on the council’s housing register – a 10 per cent increase in the last five years.

The Council has been doing everything it can to tackle the crisis, including: building the first new council homes in a generation; tackling rogue landlords to help keep private renters safe; and supporting people to find solutions to their housing problems to help prevent homelessness.