Pressure on Mayor over cheap homes

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London Assembly members quizzed the Mayor's housing adviser, Richard Blakeway, on the sale of disused St Clement's NHS hospital in Mile End Road.

The 4.5-acre site is lined up to be London's first Community Land Trust. In a bid to solve the housing crisis, community groups will get a chance to buy government-owned land and sell homes built on it for far less than the market price.

But some residents fear the East London Community Land Trust bid, which involves a £65 million plan drawn up with families living nearby, will lose out to one of three rival bids from other developers.

More than 1,000 locals bought shares in the trust, which aims to sell homes from £100,000.
The London board of the Government's housing and communities agency, chaired by the Mayor, will choose the successful bidder next week.

The Green Party's Jenny Jones, who chairs the Assembly's planning and housing committee, sought assurances that the development would be "controlled and led by the community".

Mr Blakeway has insisted any winning bid will allow the community to own the freehold of the hospital.