Scheme 'could halve' house prices

St Clement's Hospital opened in 1837

A group of schools, universities and places of worship hope to create London's first Community Land Trust (CLT) to slash the cost of housing.

Under the schemes, common in the US, ownership of a large site is given to a board of community members.

The land cost is then removed from the purchase price of all houses built on the site - equal to 60% in London.

Campaigners hope the site of St Clement's Hospital in Tower Hamlets, east London, can now become a CLT.

They are urging Mayor of London Boris Johnson, who said he backed the schemes during his election campaign, to give their bid his full backing.

Lack of affordable housing is a key issue for our community - and overcrowded conditions often undermine student achievement

Anne Hudson, headteacher

The East London Buddhist Centre, Queen Mary University and numerous schools are among the institutions launching a "people's bid" to take over the site.

Over 50 headteachers, priests, imams and workers are touring the site on Wednesday to kick off the campaign.

Anne Hudson, headteacher of nearby Bow Central Foundation School for Girls, said: "The hospital is an historical landmark and we look forward to it being used to the community's benefit.

"Lack of affordable housing is a key issue for our community - and overcrowded conditions often undermine student achievement."

Organisers say keeping the site secure has cost the city £213,000 since it closed in 2005.

They hope that, if successful, family houses there would cost half of the £317,000 average price in the borough.

'Admirable aim'

Dave Smith, of community campaigners London Citizens, who are coordinating the campaign, said: "The mayor has committed to building one CLT during this mayoralty.

"It is an admirable aim and the people of east London want to help him build it here."

A spokeswoman for the Mayor of London said: "The Mayor remains committed to setting up a pilot CLT.

"Over the last months he has facilitated extensive discussions about this and a number of sites are being reviewed."