Merton LBC could return to housebuilding months after councillors wound up the authority's development company without a brick being laid.

The board of Merantun Development - created to build homes on small sites for private rent and as social housing - concluded in 2020 that the business case for the firm was no longer viable following the impact of COVID-19, Brexit uncertainty, and higher costs of construction and borrowing.

However, Merton – one of the few London boroughs without its own housing - has now put aside £300,000 to bring four council-owned surplus sites with existing planning permission for 93 homes up to current building regulations and standards.

The council, which has 9,500 people on its housing waiting list, has a target of building 400 new ‘genuinely affordable' homes on surplus council land by 2026.

A report to a special cabinet meeting read: ‘There is a desperate need to deliver affordable homes as quick as possible to respond to the housing crisis and cost of living crisis.

‘Updating plans now would make the sites more marketable to housing associations or assist the council's timescales should the council decide to deliver the sites directly.'

An options appraisal is expected to be presented to senior councillors later this year.