By Tony Booth

The new policy announced somewhat quietly in November will provide cheap and affordable properties and could remove thousands of first time buyers (FTB's) from the 'first rung' of the housing ladder, making it more difficult for investors to sell-on their own investment units at a profit.

The Housing Minister, Yvette Cooper, said the government intended to allow councils to create new Local Housing Companies (LHC's), which could access surplus local authority land for residential development.

LHC's are not only being promised this land at nil cost, they will also be able to offer financial deals to the potential buyers of properties built on it - specifically, first time buyers and key workers.

Unlike previous schemes, local authorities will retain partial control over any land disposed of through LHC's and therefore will be able to 'encourage' how the assets are developed.