More affordable homes need to be built

England's three largest housing organisations have called for �8.4bn in investment from the government to tackle the nationwide "crisis".

The problem in London is more acute so it would take about 50% of the funding.

The Chartered Institute of Housing, the Local Government Association and the National Housing Federation have made the joint submission to The Treasury.

In the proposal, the alliance says its collaboration is "an important indicator of our joint determination" to engage with the government on housing, planning, regeneration and social care.

Investment in affordable housing is investment in London's future prosperity Sue Ellenby of the London Housing Federation

The submission calls for �7bn for affordable rented housing for people on low incomes and nearly �800m for shared-ownership housing.

It also wants �100m for temporary housing for homeless families and nearly �600m for intermediate rented housing, aimed at public sector professionals - such as teachers and nurses - and others on average incomes.

The proportion London takes of Government spending on housing has increased due to rocketing property prices.

The average price of a house in the city costs more than �260,000, more than seven times the average salary of �36,000.

'Council homes not replaced'

Nearly 250,000 people in London are on local authority waiting lists for affordable housing, and in 2004, London housing associations will take just under 48% of government grants for new affordable housing.

Sue Ellenby, head of the London Housing Federation, said: "Between 1979 and 2003, 230,000 council homes in London were sold off and not replaced, while London's population grew by twice that amount.

"Investment in affordable housing is investment in London's future prosperity.

"The Government has already shown willingness to tackle the housing crisis.

"Now's the time to back its pledges with much-needed investment."

The results of The Treasury's spending review will be announced by Chancellor Gordon Brown later this year.