LAWS on borrowing should be relaxed to help solve the housing crisis, it is claimed.

Cllr Marie Pye, who is responsible for trying to create new homes in Waltham Forest, said 300 homes could be built quickly if the government removed restrictions aimed at cutting public sector debt.

Currently there is a cap on council borrowing but Cllr Pye has joined other councils in calling for authorities to be able secure loans against the value of their housing assets.

There are 21,000 people on the waiting list for homes in the borough, with many currently living in poor conditions.

And Cllr Pye said the simple step could make a significant difference to the lives of vulnerable families.

She added: "We need more homes. Everybody will tell you that and yet currently local government is being hamstrung by rules imposed upon us that prevent sensible borrowing to stimulate house building.

"When it comes down to it what we're talking about here is thousands of Waltham Forest families living in overcrowded housing.

"Parents and children sharing bedrooms, disabled people living in unsuitable accommodation, homeless families presenting to the council and us struggling to find them places to live."