Lambeth Council could buy back former council homes in Waterloo that had been sold under the right to buy scheme.
The proposal is part of a package of measures agreed by Lambeth's cabinet on Monday night to expand the borough's housing stock.
"We're exploring whether we are able to buy back former right to buy properties, which I think is a powerful statement, but we will only do it where it actually makes economic sense – ie where we can get a higher number of units," said Cllr Pete Robbins, cabinet member for housing and regeneration.
According to the officers' report prepared for the cabinet meeting: "This might be particularly sensible in areas with high land values, such as Waterloo, whether the significantly higher costs of subsidising a new affordable home mean developers offer fewer affordable units due to viability costs.
"In these instances the council may signure a significantly higher number of units – and at lower target rents – by instead purchasing former RTB units that are being offered for sale in the immediate area."