Greenwich Council is set to borrow £142m to build hundreds of council homes in a bid to ease the housing crisis.

The cash will be on top of the £32m already being handed out by London Mayor Sadiq Khan, and money already earmarked for housing –  bringing the council’s kitty for new builds up to £240m.

There are 984 homeless households in temporary accommodation in Greenwich, the highest number for 10 years.

MORE - Greenwich leader's Brexit warning after council gets £210k handout

Council leader Dan Thorpe said last night: “We’ve responded to the lifting of the housing revenue cap and plan to borrow over £140 million to deliver the social housing our communities so desperately need.

“‘I’m determined to deliver the biggest council house building programme across Greenwich for a generation. Over £200 million of resources will be needed but we are taking the steps we need to deliver.”

The council has plans for nearly 770 new council homes, all starting to be built by 2022.

According to new council documents, five sites have been earmarked for the first round of building.

Well Hall Road, The Under Wood, Simba House in Artillery Place, Southsprings and Sam Manners House have all been touted for new council homes.

Greenwich Council upset neighbours last year when it first decided to close the sheltered housing unit at Sam Manners House.

Residents in Tuskar Street said they were not consulted on the council’s proposals to decommission Sam Manners House in place of council homes.

MORE - Lewisham Council investigates over Vodafone phone mast row

There are currently 17,000 people waiting for a home in the borough and council officers say Sam Manners House is becoming harder to let and would be too costly to adapt.

Councillors will sign off on the new funding at a cabinet meeting next Wednesday, February 20.