Councils could offer thousands of affordable housing deals to help key workers and first time buyers onto the property ladder under a groundbreaking scheme.

This marks a return of the local authority to the centre stage in providing homes for communities but in a new way - through Local Housing Companies (LHCs).

Councils will be able to offer their own deals for key workers and first time young families through new homes built on their land. Thousands more young families could get a step onto the housing ladder as a result if councils take up this option.

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New guidance for establishing LHCs was published yesterday for the first 14 local authorities who have expressed interest in the scheme.

Housing Minister Yvette Cooper said: "We urgently need to build more homes for first time buyers and families. That’s why we are investing £10.2 billion to increase affordable and social housing. But Government cannot deliver this alone. This is a new way to help councils to do their bit to support new homes for key workers and families in their areas."

Local Housing Companies could put the destiny of that land back into the hands of councils enabling them to double affordable housing levels to at least 50 per cent on sites, and directly offer key workers and first time buyers shared equity deals.

(JM)