Merton Council to Secure 146 Social Homes at Former Gasworks Site
In a significant move to tackle the housing crisis, Merton Council has approved plans to acquire 146 homes at the former Mitcham Gasworks site for social rent. This decision ensures that one of the largest new developments in the borough will include much-needed affordable housing, following widespread criticism of the initial approval that offered none.
Addressing a Growing Housing Need
The council's decision was made during a Cabinet meeting on Monday night, January 19, 2026. Councillor Andrew Judge emphasised the urgency of the situation, stating, "We have 10,500 people on the housing waiting list, which has grown by 10 per cent over the past five years. Of those, 2,000 are in acute need." The 146 social homes are expected to provide vital accommodation for local residents and help alleviate pressure on the borough's housing waiting list.
Developer Challenges and Council Intervention
Last December, Merton Council approved developer St William's redevelopment plans for 626 homes at the former Mitcham Gasworks site, despite the developer's inability to deliver any affordable housing. St William cited several reasons for this failure, including:
- Inability to secure necessary grant funding for the promised 35% affordable housing.
- Rising construction costs and complexities associated with the former gasworks site.
- Viability concerns, with some homes falling outside the grant funding timescales.
Councillors described the initial decision as "regrettable", given the acute need for affordable housing in the eastern part of the borough. Local residents had warned it was "unconscionable" that the largest new housing development in Mitcham "in a generation" would provide no affordable homes.
Funding and Future Plans
The acquisition of these homes will be funded through a combination of grants and council resources. A significant portion is expected to come from the Greater London Authority under the Affordable Homes Programme 21–26, although the exact amount and timing are still being finalised. The remainder will be financed by Merton Council using its own capital and borrowing.
The council has included a £60 million capital programme addition for the scheme covering 2026–2030, with the estimated annual cost of borrowing at just over £500,000 over 50 years. Councillor Judge acknowledged the scale of the investment, saying, "This is not without cost. Clearly there is a very significant cost to housing, but it is a cost that we need to make."
Strategic Importance and Community Impact
Council Leader Ross Garrod highlighted the proactive approach, noting, "This shows we are going out there and not just using council taxpayers' money from Merton but going out there and grabbing grants where possible, bringing investment into the borough." The council expects the homes to be completed and transferred to Merton's Housing Revenue Account within two to three years.
Councillor Judge described the scheme as "a real step forward for Mitcham and this site in particular", adding, "This is a key site in Mitcham, it demonstrates that a site that would have otherwise not come forward will now come forward. There will be homes and social homes provided." The new homes will bring Merton's total number of social homes to 221, with the council also acquiring additional properties, details of which will be revealed in upcoming reports.
Site Background and Local Context
The Mitcham Gasworks site, close to Mitcham town centre, was used for gas production until the 1960s and later occupied by National Grid offices until 2006. It is now one of the largest brownfield plots in the borough, making this development a crucial part of local regeneration efforts. The council's intervention ensures that this prime location will contribute to addressing the housing shortage, rather than exacerbating it.
