Croydon Council is the latest to join a London-wide initiative in a bid to find better deals for temporary housing.

The scheme, called Capital Letters, means all councils signed up will pool their resources when looking for temporary accommodation for families.

The council agreed to join the scheme this week with the hope it will reduce the need for more expensive nightly-let emergency housing.

Councils involved have access to a £38 million government grant to help fnd more temporary accommodation.

Usually, councils negotiate with landlords individually meaning landloards are able to charge different rates for different councils.

The whole scheme aims to make an extra 22,000 homes available for temporary accommodation by 2022.

And Croydon Council, which is set to join the scheme in April, reckons it will save it £300,000 in the first year

Councillor Alison Butler, deputy leader and cabinet member for homes and gateway services, said: “This innovative scheme means Croydon will have greater bargaining power and more funding to get longer-term, better-quality temporary accommodation in the borough for homeless families.

“By cutting the use of expensive, nightly-let emergency accommodation and working more closely with other London boroughs, we will strike better deals for residents, landlords and taxpayers. I look forward to this new initiative bringing real benefits to the borough.”