Plans to sell off car park and garage sites in Greenwich to developers have been defended by the council’s leader as a “start” to tackling the housing crisis.

Greenwich councillors nodded through proposals at a cabinet meeting to sell three sites in Kidbrooke, Charlton and Lewisham to Pocket Living.

Following last night’s decision, Pocket will build 150 “affordable homes”, raking in up to £130,000 in council tax.

The sites, The Heights in Charlton, two parcels of land in Kidbrooke Park Estate and land in Quince Road in Lewisham, are mainly garages and parking areas.

The homes, aimed at first-time buyers earning less than £40,000 a year, will be sold at a 20 per cent discount to Greenwich residents.

The deal means 80 per cent of money made by the sale will be used on developing other housing, while 20 per cent will be used on public realm improvements.

Council leader Dan Thorpe defended the plan to sell to developers, rather than the council developing the sites itself or through the council’s development company Meridian Home Start.

He said: “Clearly we need to liaise with people in the area and there have been comments online about the disposal of these particular lands.

“I appreciate people have some concerns about that, but clearly we need to address the housing crisis in any way we can – the land we are looking at here we have not been able to make the best use of as an authority.

“Hopefully the conversation will be a positive one with residents, and also we can utilise some money directly for us to build council homes at social rent.

“It won’t provide all the funds we need to build all the homes we need – but it will provide the funds for some, and you have to start somewhere.”

The number of households being placed in temporary accommodation in Greenwich has risen by more than 170 per cent in the past four years.

Between March 2013 and September last year there was a 172 per cent surge in the number of people being placed in temporary accommodation.

Cllr David Gardner questioned whether the decision could be backtracked if residents were against it.

He said: “All the sites are quite tight. If the consultation demonstrates opposition to the development, are we able to not proceed?”

He was assured the council would not be obliged to proceed, but the responses would need to weigh against the detailed proposals.

Pocket developments consist primarily of one-bedroom flats.

The developments would be between four and six storeys, bringing 151 homes to the borough.