London Councils call for £350m to safeguard housing

The government needs to provide £350 million to help local authorities safeguard the capital's housing market and provide at least 4,000 homes for rent.

London Councils is calling for the move to ensure that 2,000 affordable homes across the capital- which might not otherwise have been built as developers feel the pinch in the current credit crunch- will now be completed.

In addition the organisation wants a new housing agency set up, which would operate separately to normal council housing.

'Homes for London' would help boroughs buy existing or planned market housing from developers or housing associations, which would be offered for five or ten years at intermediate or market rents.

Once the tenancy has expired, tenants could have the opportunity to buy the property, with profits distributed back to central and local government. If they do not buy the property it will be offered for rent or sale to another household.

London Councils has identified developments in several boroughs, which have stalled in the current financial climate.