Lewisham Council has teamed up with a private landlord to build up to 300 new homes in New Cross Gate – a venture that is expected to help residents on low to average incomes.

The planned development, based in Besson Street, will be managed by Grainger plc and will also include a GP surgery and health centre, community space for the New Cross Gate Trust, and an outdoor gym.

Tenants will be more secure through 10-year renewable tenancy agreements, with 35 per cent – or up to 105 – of the homes to be let at the London Living Rent, a value set on the average income in the ward.

Most private sector tenancies are often signed on a six-month contract.

According to Lewisham Council documents: “The partnership with Grainger plc will create a new social-minded commercial landlord that will set a new standard of private renting in the borough.

“One in every two families who approaches us for housing has been made homeless because their private tenancy has ended. We do not currently have enough social homes to offer everyone in this position, so we want to make sure that there are good, secure and affordable private tenancies available to help people in this position.”

Lewisham Council hopes the scheme will “have a stabilising effect” on the local private rented sector and provide “better services at mid-market rent levels.”

The homes will also have a “very high standard” of housing management including 24/7 responsive repairs, the documents continue.

All decisions in the partnership will go through the council’s decision-making bodies including Mayor and cabinet meetings, with the partnership set up so the council can never lose control over the site.

“The partnership would only dissolve if these mechanisms fail. If this happens, ownership of the Besson Street site would revert back to us and any development costs would be split 50/50 with Grainger plc. This approach protects the council and the Besson Street site,” the documents explain.

The site planned for development has been derelict for the last 10 years.

Planning proposals are expected in 2019.