Southwark Council has set itself a target to build 1,000 new council homes before 2020.
The plan aims to use underused, vacant or problematic sites, such as garage spaces, for large-scale development. The new housing would be council-funded and managed, allowing greater control over rent levels and management.
This this could also potentially allow for new housing to be let to local residents in priority need, enabling the council to re-let existing homes and create better mobility on estates, and provide people with appropriate housing to suit their needs.
The first proposed site is the former Borough and Bankside housing office on Long Lane, SE1. Consultation on the building of 25 to 30 new homes will begin after a report is submitted to the council’s cabinet.
Peter John, leader of Southwark Council, said: "It makes economic sense to use the returns from our successful regeneration and development projects to invest in council housing.
"This will provide a secure and sustainable answer to the problem of an ever-rising housing waiting list. It will also mean we can avoid a situation where Southwark residents have to move out of the borough to find an affordable property."
A new website for the local community, which explains the council's plans for the regeneration of Old Kent Road, has been launched