Islington Council has provided more than £800,000 in new homes bonus cash to ensure a housing association delivered a full site of socially rented homes.
The council stepped in after Keniston Housing Association was unable to guarantee all 14 units on its Archway site would be available at social rent.
It was keen to start developing the site but government funding cuts meant it would have had to provide some homes at higher rents.
The borough provided £820,000 from its NHB pot to unlock and the scheme, in what it has branded one of the first deals of its kind in the country.
The new homes will be a mix of one, two and three bedroom properties, including one which has been especially adapted for a wheelchair user.
Thanks to Inside Housing for this report.