Kingston Council is waiting for final approval for plans to manage 79 new private rented homes in Hampden Road through a council-run trading company.
The site, due to be completed by August 2021, will provide a mix of one, two, three and four-bed houses, as well as a police office.
“As a landlord, the council can ensure that the tenants of both affordable homes and now market rent ones are treated fairly and given a better service than they might find elsewhere in the private market,” said council leader Liz Green.
The council has said it wants to set up a council-run trading company to manage the sites to ensure that tenants receive a quality service.
Plans to set the trading company were approved at the Finance and Partnerships Committee last week but will be subject to full council approval in April.
Sixteen of the new homes built by 2021 will be affordable housing.
Affordable housing is that which is aimed at lower-income households and households who meet specific eligibility requirements whose housing needs are not met by the current market.
In December homelessness charity Shelter ranked Kingston in the top thirty London boroughs for most people in temporary accommodation arranged by the council, with 2,294 people in temporary accommodation in 2019.
As an affluent area with high house prices, a key factor causing people to need temporary accommodation is the lack of affordable and social housing in Kingston.