Havering Council Reviews Mercury Land Holdings Spending in Havering 2026

Key Points

• Reform-led Havering Council is scheduled to review its funding of its wholly owned in-house property developer, Mercury Land Holdings (MLH).
• Councillors will rethink how money is spent on the developer under the authority’s latest medium-term financial strategy.
• MLH builds and manages public and private homes in the borough and purchases properties for the council’s public housing stock to reduce reliance on costly temporary accommodation.
• Last year, it was revealed that MLH owes Havering Council approximately £37 million.
• Further investment plans and financing implications are currently being developed and will be included in the budget report and capital strategy presented to full council in March 2027.
• Former Conservative councillor David Taylor welcomed the review following years of lobbying, calling for robustness, transparency, value for money, and the delivery of social housing rather than a box-ticking exercise.

Havering (East London Times) November 12, 2026 – Reform-led Havering Council is set to review its funding of its wholly owned in-house property developer, Mercury Land Holdings (MLH), as councillors prepare to rethink how public money is allocated under the local authority’s latest medium-term financial strategy.

Why Is Havering Council Reviewing Its Investment in Mercury Land Holdings?

According to the council’s latest financial strategy, councillors will re-evaluate how funds are directed toward Mercury Land Holdings, a home-builder owned entirely by Havering Council. The company is employed to construct and manage new residential properties across the borough, encompassing both publicly and privately owned homes. Additionally, the developer has been utilised to acquire properties for the council’s public housing stock, a measure aimed at reducing Havering’s reliance on expensive temporary accommodation.

While the financial strategy confirms that a reassessment is underway, the document does not detail the specific operational or structural outcomes the review will mean for the developer. It was revealed last year that Mercury Land Holdings owes the local authority approximately £37 million.

As reported by local democracy reporter Sebastian Mann, the financial strategy states:

“The council is also reviewing investment in Mercury Land Holdings over the medium-term financial strategy.”

The document further notes:

“These plans are still being developed, and any further investment will be included together with the financing implications in the budget report and capital strategy to full council in March 2027.”

Havering Council was approached for comment regarding the review.

How Has Former Councillor David Taylor Responded to the Scrutiny Review?

News of the upcoming financial assessment has been welcomed by former Conservative councillor David Taylor, who has spent years lobbying for increased oversight of the wholly owned company.

As reported by local democracy reporter Sebastian Mann, David Taylor stated:

“Mercury Land Holdings has been the subject of serious questions about its financial relationship with the Council, including the substantial sums it owes Havering taxpayers.”

Mr Taylor emphasised that the review must go beyond superficial administrative checks to ensure public funds are protected.

As reported by local democracy reporter Sebastian Mann, Mr Taylor said:

“I have consistently argued that this relationship needs proper scrutiny and transparency.”

He added: “This announcement is an important step forward, but the review must be robust. It cannot simply be an exercise in ticking boxes or rubber-stamping previous decisions.”

Outlining what he expects the assessment to achieve for the local community, Mr Taylor stressed the need for measurable returns and affordable housing delivery.

As reported by local democracy reporter Sebastian Mann, Mr Taylor stated:

“Residents need to know that their money is being used responsibly. Any future investment must demonstrate genuine value for money and deliver tangible benefits for Havering.”

He concluded: “Crucially, we need to see this translate into the delivery of the much-needed social housing our borough desperately needs.”

What Is the Background Behind Mercury Land Holdings and Its Council Debt?

Mercury Land Holdings operates as an in-house property development company wholly owned by Havering Council. Created to build and manage both private and public housing within the London borough, the entity also plays a direct role in expanding the council’s public housing stock by purchasing existing homes on the market. This acquisition model is designed to provide local authorities with direct housing supply and lessen the financial burden caused by placing homeless households into costly temporary accommodation. However, the financial relationship between the local authority and the developer has drawn sustained political scrutiny, particularly following revelations last year that the home-builder owed the council around £37 million.

How Could This Financial Review Affect Havering Taxpayers and Residents?

The outcome of the medium-term financial strategy review could directly influence how Havering Council manages its capital resources, public debt exposure, and housing delivery targets ahead of March 2027. For Havering taxpayers, any adjustments to future investment or debt repayment structures involving the £37 million owed by Mercury Land Holdings will determine the level of financial risk carried by the local authority’s broader budget. For residents awaiting housing support, changes to how the developer is funded or directed could affect the pace at which new social housing is delivered and whether the council can continue acquiring properties to reduce its reliance on temporary accommodation.