Merton Council Unveils Plan for 2,500 New Homes Merton 2026

Key Points

• Ten-Year Target: Merton Council has announced a major initiative to build a minimum of 2,500 new homes across the borough over the next decade.
• Affordable Housing Focus: The plan aims to deliver 1,500 affordable units, dependent on securing adequate grant funding.
• HRA Reopening: To directly manage its expanding property portfolio, the local authority is officially reopening its Housing Revenue Account (HRA).
• Morden Town Centre Transformation: Comprehensive regeneration plans for Morden town centre are projected to contribute approximately 1,500 units towards the overall goal.
• Active Construction: Construction is underway at Elm Nursery, Raleigh Gardens, and Farm Road to deliver the first council-built homes in a generation.
• Multi-Agency Collaboration: The strategy relies on partnership working with the Greater London Authority (GLA), housing associations, and private property developers.

Merton (South London News) September 24, 2026 — As reported by the Merton Council Communications Team, Merton Council announced on September 24, 2026, an ambitious ten-year housing strategy targeting the delivery of at least 2,500 new homes across the London Borough of Merton, incorporating 1,500 affordable properties subject to external grant funding.

What Are the Core Objectives of Merton Council’s New Housing Strategy?

Under the newly approved New Homes Programme, Merton Council seeks to significantly expand local housing delivery to tackle the ongoing regional housing crisis. The strategic roadmap, which has received approval from Merton’s Cabinet and is set for formal ratification by Full Council, establishes a target to deliver 2,500 homes over the coming decade, with a specific focus on municipal and affordable housing.

As reported by Merton Council’s press unit, Leader of Merton Council, Councillor Ross Garrod, stated:

“We’re proud to already be building the first council homes in Merton in a generation, but with so many families locally in need of a home we are determined to go further. Our ambitious New Homes Programme will help us do just that, with the aim of delivering 2,500 more homes in the borough over the next decade, with a focus on council homes. By working with the community and with government, the Mayor of London, developers, and housing associations, we will deliver the homes local people need.”

How Will the Local Authority Execute the 18-Month Operational Roadmap?

Over the next 18 months, municipal planners will evaluate multiple development routes to accelerate construction output across various housing tenures. As detailed in local authority documentation, the primary operational strands comprise:

1. Site Suitability Assessments: Moving forward to assess previously identified municipal locations for residential feasibility.
2. Town Centre Regeneration: Advancing master plans to transform Morden town centre into a modern urban center featuring integrated housing for local residents.
3. Borough-Wide Land Identification: Proactively searching for new sites across Merton to support residential construction.
4. Public-Private Partnerships: Collaborating with private developers and registered housing providers to construct properties on council-owned land.
5. Direct Property Acquisition: Working alongside commercial housebuilders to acquire housing stock directly from private developments.

In addition to expanding construction streams, Merton Council confirmed it is reopening its Housing Revenue Account (HRA). Reopening the HRA enables the local authority to manage its own housing stock directly and secure hundreds of social homes built by private developers through Section 106 agreements.

What Housing Projects Are Currently Under Construction Across Merton?

The baseline phase of the borough’s housing expansion is already active. As recorded by municipal reports, initial construction works represent Merton’s first directly delivered council housing in a generation.

Active building works are currently taking place at three specific sites:

• Elm Nursery (Mitcham)
• Raleigh Gardens (Mitcham)
• Farm Road (Morden)

These inaugural projects are backed by a multimillion-pound financial allocation from the Mayor of London’s Affordable Homes Programme 2021–2026. Phase one is designed to deliver 75 energy-efficient homes by the 2027/28 financial year, featuring sustainable build standards intended to lower ongoing operational utility bills for tenants.

Planning documentation reveals that the broader pipeline includes five additional council-owned sites with the potential for approximately 108 social-rent homes, alongside five larger sites identified for mixed-tenure developments capable of providing between 700 and 800 units. Contracts have also been exchanged to acquire 146 properties from an ongoing private development, with delivery expected towards late 2029.

What Sector-Wide Economic Challenges Impact This Construction Output?

The delivery of the New Homes Programme takes place against a complex macro-economic backdrop. Housebuilding across the United Kingdom faces headwinds, including elevated material costs, high borrowing rates, and persistent labor shortages within the construction sector.

Despite these operational hurdles, municipal leaders maintain that the council remains committed to pursuing all available funding avenues, grant frameworks, and land-use opportunities to deliver affordable housing for local residents. Central to this funding strategy is a close alignment with City Hall and the Greater London Authority to maximize capital grants for affordable housing.

Background of the Development

The London Borough of Merton transferred the majority of its municipal housing stock to Merton Priory Homes (part of the Wandle Housing Association and later Circle Housing, now Clarion Housing Group) following a tenant ballot in 2010. This stock transfer meant the council ceased direct management of municipal housing and closed its operational Housing Revenue Account (HRA).

In recent years, escalating housing costs across Outer South West London have increased pressure on local authority temporary accommodation budgets and lengthened local housing waiting lists. In response, Merton Council initiated plans to re-establish its role as a direct housing provider.

In late 2025, the council broke ground on its first municipal housing scheme in over a decade at Farm Road in Morden, joined by Deputy Mayor of London for Housing Tom Copley. Reopening the HRA marks a formal structural pivot, returning Merton to the status of a direct municipal landlord capable of holding, managing, and maintaining public housing stock.

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Prediction: How This Development Will Affect Key Local Stakeholders

The implementation of Merton’s 2,500-home New Homes Programme will impact several distinct groups across the borough over the next decade:

• Local Residents and Waiting-List Applicants: Households currently in temporary accommodation or on municipal housing waiting lists stand to benefit from a substantial increase in council-managed social-rent units. Increased local supply provides opportunities for families to secure stable, long-term tenure within their existing communities rather than being relocated outside the borough.
• First-Time Buyers and Private Renters: The addition of 1,500 affordable homes—comprising social rent, intermediate tenures, and shared ownership—offers local workers and young families clearer pathways to affordable housing options within Outer London.
• Morden Town Centre Businesses and Community: The proposed delivery of approximately 1,500 units in central Morden as part of the “Remaking Morden” initiative will increase local footfall. This influx of residents is expected to stimulate private commercial investment, boost high-street retail, and support infrastructure improvements around the Morden Underground station area.
• Private Developers and Contractors: Housing associations, civil engineers, and construction firms will see expanded procurement opportunities through public-private joint ventures, framework contracts, and land acquisition agreements as the council deploys its capital expenditure over the ten-year period.