for Greater London is now £214,257 and £155,080 in the south-east.

Fueling sprawl?

There is speculation that Mr Prescott will announce 200,000 new affordable homes in the south-east.

Projects in Essex, Stansted and the Thames Gateway are apparently being considered.

Existing schemes such as in Croydon, where a 64-home development offers key workers a home at a third of the market price, have been hailed a success.

Housing promises

New business planning zones to improve investment

Higher density developments to protect greenbelt

Speeding up of planning appeals

Incentives for councils to improve planning system

Targeting poor quality rented homes

Cash to revive the housing market in areas of low demand

Tony Newman, who heads housing on the Association of London Government, told BBC News the extra cash would enable London boroughs to begin to address housing shortages.

He added: "It's absolutelyvital that we seize this opportunity and ensure in the coming years that future investment is committed by the government to allow us to tackle these problems once and for all."

Sue Ellenby, of the National Housing Association, welcomed the announcement, but said it was only about half the money required.

But Neil Sinden, assistant director at the Council for the Protection of Rural
England said: "The extra money will help deliver much needed social housing but
it must be used to underpin urban regeneration, otherwise it will only fuel
further greenfield sprawl and community opposition."

Reforms

Liberal Democrat housing spokesman Adrian Sanders called for more attention to be paid to housing shortages in rural areas.

And Ben Jackson, director of external affairs at Shelter, said it was crucial the new money targeted the people most