A £100 million venture between developers and a council could eventually bring 2,000 affordable homes to the city – double what was initially proposed.

The first homes from a ground-breaking joint venture between Brighton and Hove City Council and Hyde Housing could be built by the end of next year, the council's housing committee heard last night.

Council leader Warren Morgan first outlined the plans for 1,000 homes in The Argus in October but council papers have revealed that the project could ultimately deliver twice that number of new homes for let and sale at below market rates.

Housing and new homes committee members said the project was the most important thing the council will do for years and said they hoped it would help tackle the national housing scandal on a local level.

Councillors were told that the joint venture company could be established by the end of the year, with the first sites for new homes identified early in the New Year and planning sought in the spring.

It is proposed that 500 homes will be made available at 40 per cent of the new National Living Wage with a particular focus on studio flats to reduce a reliance on homes of multiple occupation.

A further 500 homes with between 25 and 75 per cent shared ownership will be made affordable to buy for residents on “average incomes”.

The first homes will be built over five years but the joint venture has a 60 year business plan and could be used to deliver many more homes.

The project’s £105.5 million investment costs will be met equally by Hyde and the council who will borrow the money at low interest.

The council will also explore options for other developers to help meet the costs as part of contributions to planning consent.

The joint venture could build on council land, Hyde-owned sites and even buy additional land while the council could also look at using the joint venture to deliver regeneration and expansion projects of current council estates.

As well as the joint venture, the council is also looking to develop their own housing company to purchase new homes off-plan at a discount to full market value.

Labour councillor Peter Atkinson said: “The current housing shortage is not just a housing crisis it is a housing scandal and this starts to resolve this on a local level.”

Conservative councillor Joe Miller said: “More housing for low earning working households is much needed but I do have severe reservations including the potential impact on the general fund as a result of this borrowing.”