Cross-council scheme could create 300 affordable homes

With the typical family home in Westminster costing £1million, many families are driven away from the city, as only the very wealthy can afford to buy homes.

This pilot scheme would provide an affordable route into London for average working families.

The plan was submitted to Communities Secretary Eric Pickles on Wednesday.

The three councils propose to raise the £53million needed by borrowing against their combined housing assets.

Spearheaded by Westminster Council, the project could generate around 700 construction jobs if it is given the go-ahead.

Westminster Council's leader for housing and property, Councillor Jonathan Glanz, said: "This proposal is all about giving hard-working people on average salaries at least some chance of living in Westminster.

"At present they are simply priced out, so Westminster - like other parts of central London - becomes a property world polarised between the very wealthy and those in affordable housing.

"We need to continue ensuring that we provide for a wide range of people and maintain mixed communities, including middle class people on middle-range salaries."

The council said it was too early to say whether the homes would be built in an estate or whether they would be scattered across the city.