Hammersmith and Fulham Council has signed a 50-50 joint venture deal with a property developer in order to build what they describe as ‘genuinely affordable’ homes.

The London authority has created the joint venture – called HFS Developments – with developer Stanhope Plc. and will build 133 homes in Fulham and 190 in Sands End.

The partnership will enable the council to share in any profits generated through the sale of homes on the private market – money which can be reinvested in more housing.

Hammersmith and Fulham said the ‘vast majority’ of the houses in Fulham will be at council-level rent with local people having first refusal.

The development in Sands End is planned to be 100% homes for market sale with a contribution to help fund affordable housing elsewhere.

The plans are similar to those proposed by Haringey council whose £2bn development vehicle will be a 50-50 partnership between the authority and a private developer.