Hundreds of homeless families are set to benefit after councillors agreed to expand a social landlord scheme.

Local Space, a housing association established in partnership with Newham Council, will be able to purchase and develop 800 new properties after cabinet members gave the green light at Thursday’s cabinet meeting.

These will be delivered over four years and be primarily two and three bedroom homes.

The council will have exclusive nomination rights for these homes, which will be available to homeless families at an affordable rent.

Sir Robin Wales, Mayor of Newham said: “London’s housing crisis is felt acutely in Newham and we have a shortage of good quality accommodation to offer our homeless families.

“We want families to stay in Newham but for those on low incomes, this is becoming increasingly difficult with rapidly rising rent increases in the private rented sector.

“Local Space will offer a helping hand to those who need it, giving them an affordable home.

“I am proud that we have been able to help thousands of families in this way and by expanding the scheme, we can now help even more.”

Local Space was set up in 2006 to increase the supply of accommodation for homeless families and initially saw 450 properties transferred into the scheme.

In the past decade it has provided a home for nearly 3,600 households across 1,800 properties.

Chairman of Local Space, John Layton, added: “Local Space is committed to assisting with the acute shortage of affordable accommodation for homeless households in east London.

“This new agreement will enable Newham Council and ourselves to make a significant increase in the supply of homes over the next four years.”