Hundreds of low-cost homes are being planned in Brighton and Hove despite a severe shortage of space.

Councillors on Brighton and Hove City Council's housing committee will be asked on Thursday to endorse a major new building programme.

Although the council is likely to spend only £1.6 million on low-cost homes, its commitment helps bring in far more from other sources.

Housing director Ian Long said more than 300 homes were already being built and 327 more were planned.

The Housing Corporation is contributing £21.2 million and private firms are investing a further £20 million.

Mr Long said: "This means a total investment in the city of £42.8 million that will help address housing needs and provide a significant impetus to the local economy and employment."

Many of the homes are aimed at key public sector workers, such as nurses and teachers, who find it hard to buy homes in the city.

None of the sites for new homes is big and no single scheme is for more than 25 homes.

Some schemes are in the suburbs such as The Rise in Mile Oak but many are for city centre sites such as infill housing in the North Laine area.

The emphasis wherever possible will be on using derelict city centre sites through renovating existing buildings or building on brownfield land.