Sutton Council is “in discussion” with elderly residents about whether they will move out of their homes while new flats are built.

The authority thinks it could save up to £3 million if the 25 households temporarily relocated while work takes place.

In August, the authority approved an extra £14 million for the regeneration of Beech Tree Place.

This brought the budget up from £30m to £44.2m for the development of 93 new homes in Sutton Town Centre.

Now, the council is in discussions with existing residents in  25 sheltered homes on the site about whether they will move while works take place.

They are all due to be rehoused in one of the new blocks when work is completed.

Sutton Council’s housing, economy and business committee heard an update on the progress of the redevelopment at a meeting on Tuesday (October 18).

A report presented to the committee outlines that moving all existing residents by March 2023 would mean the development could be “built out in a single phase” saving up to £3 million.

But this is only possible if all residents agreed to the temporary move.

Spencer Palmer, the council’s director of environment, housing and neighbourhoods said: “There has been further consultation with Beech Tree Place residents on the housing options being considered during construction on-site.

"Those discussions are ongoing.”

Most of the residents are between the ages of 60 to 80.

The meeting heard that so far one couple has moved while others are still in discussions with the Sutton Housing Partnership.

Simon Latham, assistant director, housing and planning and regeneration, said that so far one couple, who are “at the younger end of the spectrum” had relocated.

He added: “Many of the other residents are considering this option carefully. We are talking to each resident and looking at their needs. 

"We are not rushing their decision-making process.

“Of course, the number of properties available in that geographical radius is limited.

"It is fair to say that the other conversations are a ‘work in progress’ and quite a number have indicated they are interested in moving.

“I think understandably, the challenge of needing to move temporarily is not a very attractive option.

"Which is why it is a choice not a requirement.”

The council has put in another grant bid for £2.2m of GLA funding to deliver the scheme as a 100 per cent rented.

It said this will reduce the risk to the council on offering shared ownership flats, currently planned to be 35 of the total.

The plans include a four-storey building and two six-storey buildings with a total of 93 flats.

Since the decision for extra cash for the project, the council has bought up two houses in West Street on land that is needed for the development and made a start on site.

Making a start on the works by September 30 meant the was able to claim £8.42m of government grants it had been awarded.