The Waterloo Estate project was halted in 2023 and Havering Council now estimates it will resume in “five to seven years’ time”, according to a report published this week.
In the meantime, the authority plans to erect 18 modular homes on the site in a bid to reduce pressure on its housing sector, which has become a significant financial drain.
Each unit will cost £200,000 – at a total cost of £3.6million – though they can be relocated up to five times, the report says. They can also be stacked up to three storeys’ high.
Further breakdowns of the cost have been kept confidential, but the town hall says they can be quickly built and will be partly paid for by grant funding.
The scheme was recommended for approval by the council’s overview and scrutiny committee on January 14.
Conservative councillor and committee chair David Taylor said the places committee had been assured the homes would be of “high quality,” and that Havering would “seek best value for money” when purchasing them.
The rectangular, single-storey homes would come furnished and be heated by air-source pumps.
He continued: “Havering has also made it clear that these will not be basic ‘container’ homes as seen elsewhere in the country, but high-quality and modern homes with garden space.
“No one wants to see families living in temporary accommodation. These units will be a big step forward in ensuring we can move families out of [bed-and-breakfast style temporary accommodation] and into warm, dry homes.”
Fellow Conservative councillor Osman Dervish said it was important the council was able to move the homes around as they will “likely” be needed elsewhere.
Though the warranty covers five relocations, Mark Butler, the assistant director of regeneration and place, said the first relocation would likely be permanent.
Temporary accommodation is one of the biggest financial drains on the cash-strapped council, which is controlled by Havering Residents Association.
The town hall overspent its accommodation budget by £6.1m last year and is now facing a staggering £75m budget gap for 2025-26.
The council will also continue to purchase standard homes in the borough to boost its housing stock, Mr Butler said.
Last month, it approved a separate plan to convert Chesham House in Romford into housing for 55 at-risk or homeless families.
The modular home scheme will be formally approved by Havering Council’s leadership later this month.
They will be available by the autumn, the town hall says.
