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The offer by web design agency Notting Hill Internet Services, one of the largest agencies in the UK, is available to start-ups and family firms in selected west London postcodes.

The company will create five-page websites and host them without charging a fee. Managing director Fari Peyman, who launched the business in 1999 from his Notting Hill bedroom, said: "We felt it was time to give something back to the local community that has served us so well.

"It's a tough time for many businesses in London, so we wanted to help stimulate the local economy.

"Start-up business numbers have swelled as recently redundant Londoners prefer to set up their own businesses over entering a flooded job market. This is a genuine offer, with no strings and no catch." When the web agency launched the service a week ago, Mr Peyman said there was "a huge amount of scepticism".

However it has already created websites for several firms, including local nursery Denbigh Under Fives and yoga instructor Katrina Repka.

The offer is available to businesses operating in W2, W8, W10 and W11 postcodes.