The Government grant specifically aims to build extra council homes across the country during the recession - and the new homes being built in Islington will help around 250 people off the council's waiting list.
However, the grant has been controversial, as Islington Council has used it to replace £4million which they had already allocated to building new council homes.
Emily said:
"Since I was elected I have been pushing the Government and the council to build more social housing for families on Islington's waiting list. The £4million from the Government is very welcome; though I am concerned the council is using it to replace money that was already set aside for new homes. We should be building as many new council homes as we possibly can, and so the council should spend the £4million they are saving on building extra homes."
Islington is one of 47 local authorities to benefit from the Government money for housing. Speaking about the national programme, Housing Minister John Healey said:
"I have given the green light for councils to start building over two thousand new council homes, backed by £127million Government cash. It means that, despite the tough economic climate, the biggest council house building programme for almost two decades will begin by the end of the year."