Purpose

To present and seek approval for the councils New Homes Programme and associated budgets, and delegates decision making authority to enable effective delivery.

Decision

RESOLVED:

Cabinet is asked to:

A. Approve the establishment of the Council’s New Homes Programme (the Programme) as set out in this paper.

B. Approve the proposed approach to project finance, delivery and resident engagement, specifically noting the intention of taking a mixed approach to housing delivery, combining council-led direct delivery, strategic partnerships and acquisitions in order to deliver at pace whilst ensuring financial resilience.

C. Note that the Programme is one of a number of measures being taken to increase access to sustainable, affordable housing in the borough, and builds upon the recommendations and decisions set out in the cabinet paper presented 24 November 2025 “Merton’s Response to the Housing Crisis”.

D. Note the council’s ambition to enable delivery of a minimum of 2,500 new homes in Merton over the next decade, with a target to secure via acquisition and/or development on Council owned land 1,500 new affordable homes by 2036/37 (subject to grant), with development measured through starts on sites and completions, and agree that this will be reviewed and updated on an annual basis as economic and market conditions change.

E. To recommend to Council an increase of £250m in Merton capital funding provision over the ten years to 2036/37, to be funded from a combination of capital receipts, reserves and HRA/General Fund borrowing (to be accessed only as and when required).

F. To approve expenditure of £1.0m of General Fund revenue in the remainder of 2026/27 in addition to existing budgets, to be funded from reserves, to support the Programme.

G. Delegate authority to the Executive Director of Housing & Sustainable Development, in consultation with the Executive Director of Finance & Digital, to make applications for grant and loan funding to support the delivery of the Programme and enter into agreements with funding bodies to receive funds.

H. Delegate authority to the Executive Director of Housing & Sustainable Development, in consultation with the Cabinet Member for New Homes and Regeneration, to agree site changes and additions to Programme, within the overall financial parameters.

I. Delegate authority to Executive Director of Housing & Sustainable Development, in conjunction with the Executive Director of Finance & Digital (Section 151 Officer) to progress the delivery of the Programme within the approved budget and, subject to demonstrating best value for the council, to:

a. Carry out a procurement exercise in relation to the construction of the self delivery sites as set out in paragraphs 5.11 -5.14

b. Carry out a procurement exercise to secure development, construction and investment partners for the Mixed Tenure Sites as set out in paragraphs 5.15 to 5.20;

c. Acquire existing or in-development stock (sites) from the private sector for best value as set out in paragraphs 5.21 to 5.24.

J. Note that following procurement evaluation for construction of the self delivery sites and the development construction and investment partners for the mixed tenure sites referred to in recommendations I.a and I.b above, the decision on final award will be referred to Cabinet which will consider a report setting out the results of the procurement process, any recommendation to enter into a contract with a proposed developer and the financial and other implications for the Council of doing so in accordance with the Council’s Contract Standing Orders.