A PRE-SCHOOL in Lee which faced a massive rent increase will remain open.

Parents of pupils at Newstead Pre-School in Birch Grove had been concerned after learning that the facility was facing a 500 per cent rent increase.

But Lewisham Council have now agreed to extend the lease at the current rate until the end of the year.

They will also negotiate further with a new parents committee, which runs the school, at a lower rate than had been feared.

Committee member Nick Prater said: "We could see no sense in Newstead Pre-school closing. 

"It has fantastic staff, great facilities and is providing a much-needed service. 

"We all love Newstead as it is right now, but there are also plenty more things it could and should be offering to parents.  We'll be investigating how to deliver those things in the coming months."

For information on places at Newstead call 020 8857 9500.