Merton Council has approved a significant boost of £250 million to its new homes programme, aiming to deliver at least 2,500 new homes in the borough over the next decade.
The council's Cabinet met on Monday, September 21, 2026, to endorse the establishment of the Council's New Homes Programme. This initiative includes a target to secure 1,500 affordable homes by 2036/37 through a mixed approach to housing delivery. This will involve council-led direct delivery, strategic partnerships, and acquisitions.
To support this ambitious programme, the Cabinet recommended an increase of £250 million in Merton's capital funding provision over ten years. This funding will be sourced from capital receipts, reserves, and Housing Revenue Account (HRA)/General Fund borrowing.
An additional £1 million of General Fund revenue was also approved for 2026/27 to support the programme's initial stages. Authority has been delegated to the Executive Director of Housing & Sustainable Development, in consultation with relevant officers and Cabinet members, to manage site changes, secure funding, and progress delivery, including procurement exercises for construction, development partners, and acquisitions.
Final contract awards for self-delivery and mixed-tenure sites will be referred back to the Cabinet following procurement evaluation.