Havering Council has been given almost £24million to spend on new housing in the borough, amid a desperate financial crisis.

The £23.9m, provided by the Greater London Authority (GLA), will go towards the council’s plan to buy 160 family-sized homes by April 2026.

Councillor Paul McGeary, cabinet member for housing, said the town hall will look to buy back former council houses, private properties, and new builds.

He called the funding a “game-changer,” adding: “We are dedicated to providing our residents with the homes they deserve, and this programme is a crucial step towards achieving that goal. Everyone should have access to a safe and affordable place to live.”

Housing currently places a huge strain on the council, as it forks out millions to keep homeless residents in temporary accommodation.

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In June, the council warned that the demand for housing had outpaced supply.

The authority was rescued from effective bankruptcy in February by a £35m loan from central government. In order to stay afloat in 2025/26, it will need to borrow even more.

The increasing cost of housing, combined with pressures on social care, means the council will likely fall short by £75m.

Speaking to reporters on November 6, resource director Kathy Freeman said: “Every single year, we’re going to have a budget deficit that’s carried forward until the system fundamentally changes.

“Unfortunately, we’re not able to set a legally balanced budget again, unless we go through the route of applying for another capitalisation direction [a loan].”

Councils are required by law to set a balanced budget at the start of each year. Expenditure and revenue must be equal.

Councillor Chris Wilkins, cabinet member for finance, previously said: “We are in trouble because of funding, not because we don’t want to provide services.

“We need the grant funding to increase significantly – otherwise, we are going to be in a lot of trouble.”

The £23.9m was provided by the GLA as part of a city-wide scheme to tackle what it calls an “unprecedented housing crisis”.

The programme, launched in 2023, was set up to allow councils to purchase homes and convert them into social housing or dedicated temporary accommodation.

According to the GLA, one in 50 Londoners was living in temporary accommodation last year.

That translates to 170,000 people and 83,000 children qualifying as homeless.