A London authority is offering council housing tenants up to £38,000 for their properties in a bid to free up residences.

Under its Grants to Move scheme, Harrow Council will offer funds to council tenants looking to downsize and move into smaller properties, relocate to private rented accommodation or buy their own private home.

Under the downsizing grant, tenants will receive support to find a new council house and a grant of £1,500 for each bedroom they lose in the move. Residents who move into private rented accommodation could receive £6,000 for giving up a four bedroom flat.

Tenants who wish to purchase their own property could receive between £20,000 for giving up a one bedroom property and £38,000 for a four bedroom residence.

Residents will also be provided with information on the benefits and disadvantages of taking up a private tenancy or becoming a homeowner.

Councillors expect the programme will help free up properties and shrink the local authority’s 4,000 person council house waiting list, while cutting council spending on housing need service.

Locating families in temporary accommodation currently costs Harrow Council around £3m a year.

Harrow Council cabinet member for adults and housing, Barry Macleod-Cullinane, said: ‘Our Grants to Move scheme supports people to voluntarily move into private accommodation or downsize their council accommodation, and in the process frees up valuable housing for our homeless families.

‘We will treat each application on a case by case basis and there will be checks and balances in place to prevent fraud. The council will receive a quick payback as we reduce the number of people living in temporary accommodation.’