The London Daily News

London's estates agents may have some breathing space today after the government said it will buy unsold homes in the capital in a multi million pound effort to kick start the market.

Property companies are frozen with fear in the current economic climate, offices are struggling to shift barely two houses a week and agents are looking over their shoulders in the face of mass layoffs.

Yesterday's announcement by Housing Minister Margaret Beckett will see over 300 newly built empty homes bought and let out via councils to people on the waiting list, easing the pressure on agents and builders.

Phase One

Phase one of the plan will see £13m spent across the city buying up 335 properties - what Beckett called "affordable homes."

She said the plan was:

"...part of a wide range of actions we are taking to help overcome the challenges of the housing market."