Councils could offer thousands of affordable housing deals to help key workers and first time buyers onto the property ladder under a Local Housing Companies (LHCs) scheme proposed by housing minister Yvette Cooper.

Councils will be able to offer their own deals for key workers and first time buyers through new homes built on their land. It is claimed that thousands of young families could get onto the housing ladder as a result if councils take up this option.

Cooper said: “We urgently need to build more homes for first time buyers and families. That’s why we are investing £10.2bn 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.”


Each LHC could have the potential to deliver up to 1,000 new homes. They are a key part of the Governments Housing Green Paper to meet the Prime Ministers target to provide three million more homes by 2020. The Government is investing £10.2bn over the next three years on more affordable and social housing.