NHS sells sites to build cheap homes

Thousands of low-cost homes for key workers will be built on former NHS hospital sites.

The biggest ever sale of state land is aimed at easing the housing shortage, particularly in London and the South-East.

A total of 4,000 acres, equivalent to the borough of Hammersmith and Fulham, will be handed over. Most of the land to be sold is in the South.

The £500 million sell-off of surplus property was announced today by Deputy Prime Minister John Prescott and Health Secretary John Reid.

Under the scheme, the land will be sold to housing associations or developers with a strict remit to build a proportion of low-cost houses and flats for workers such as teachers, policemen and nurses.

Any money raised will be ploughed straight back into the health service, the Evening Standard understands.

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