Haringey Council has set up its own company to build homes for the 9,000-plus families on its housing waiting list.

The cabinet rubber-stamped the proposal to set up a wholly-owned company (Woc) to provide housing – a key pledge in the Labour group’s election manifesto – at a cabinet meeting on Tuesday (July 17).

It means the council will be able to borrow more money to build affordable homes and use any profits to fund extra housebuilding.

Initially, the Woc will only be able to take on small-scale building projects of up to 150 homes, but the council hopes it will be able to undertake bigger projects as it acquires resources and expertise.

Setting up the company will help the council to meet its target of building least 1,000 council homes at council rents by 2022.

It will also ensure the homes remain under the council’s ownership, as they will not be subject to the statutory right to buy.

Three sites have been earmarked for development: the former Cranwood Care Home site in Muswell Hill, Brunel Walk near Seven Sisters station, and unused land and the car park behind the Wood Green Civic Centre.

During the same meeting, the cabinet voted to scrap the previous administration’s decision to provide homes in partnership with private developer Lendlease.

The deal with Lendlease would have provided 6,000 homes over 20 years – but opponents claimed tenants on estates slated for demolition would not be re-housed in affordable homes.

Cabinet member for housing and estate renewal Cllr Emina Ibrahim described the Woc as “a clear move to change the direction of housing in Haringey”.

She added: “Providing good quality, affordable housing is at the very heart of this cabinet’s vision and by setting up our own company, we are ensuring that we have the power and tools to deliver homes that are genuinely accessible to all.”

A report looking at the feasibility of the first three development sites will return to cabinet later in the year.