COUNCILLORS have welcomed a £40 million scheme to develop garage sites across the borough into 46 new affordable homes.

The Government has allowed the bankrupt council to borrow almost £10 million from the Public Works Loan Board to help finance the scheme which was agreed by cabinet on Wednesday.

Cllr John Kent, leader of the council said he believed this was a sign of increasing confidence in the council since its financial collapse following a swathe of bad investments.

He said: "This is a significant step forward, 46 new council homes at affordable rent is not to be sniffed at. The fact that the Government now has the confidence to allow us to borrow £10 million is significant and it just goes to show the difference that a Labour council can make."

The new council homes intended for affordable rent will be built across sites in South Ockendon, Chadwell St Mary and Stanford Le-Hope that are currently used for garages.

Cllr Mark Hooper, Labour councillor for Stifford Clays, also welcomed the scheme. He said: "I'm over the moon that we are developing 46 council properties which we have not done for a considerable time. Since 1981 over two million council properties have been sold off and only been replaced by four per cent of that in the same period.

"As a councillor it breaks my heart that I have to support people who can't find accommodation to live in at affordable cost. I hope we get much more in the future."

Contracts will be awarded this autumn, with a start on site in spring 2025 and completion in spring 2027.

The project will be funded by £9.8million retained Right to Buy receipts and £9.8million borrowing to be funded through the council's Housing Revenue Account.

The council will demolish existing garages and build 33 new council homes at Broxburn Drive in South Ockendon. six new council homes will be built at Lyndhurst Road in Stanford Le-Hope following demolition of garages there, along with seven new homes at Vigerons Way in Chadwell St Mary.