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It is one of 68 policy suggestions to ease the affordable housing crisis in the report by business lobby group London First.

Many of the ideas are aimed at getting the private sector on board, in tune with deputy prime minister John Prescott's agenda.

The report identifies a lack of infrastructure, complex planning regulations, insufficient housing grant and a lack of planners as barriers to affordable housing.

Valerie Owen, head of London First's regeneration taskforce and author of the report, said she was not calling for all the policies to be implemented but wanted to spark debate.

She said: "The scale of housing need can only be met by a comprehensive set of policies which incentivise as well as make demands of the private sector."

The idea of direct funding for developers from the Housing Corporation was first mooted several years ago but put on the back burner.

Michael Irvine, interim housing director of the Association of London Government, said the current system of joint commissioning between boroughs and housing associations was working well.

He said developers "might be driven more by the profit motive than the housing needs and wider social and economic requirements of the people that live there".

However, he praised the idea of forward funding by the Housing Corporation for large developments.

Mike Haslam, president of the Royal Town Planning Institute, said the proposed fast-tack planning scheme for large developments approved by the mayor could lead to planning decisions being contested in court.

He said: "The mayor might want something but someone else might not. I could see that being a real recipe for argument in the courts."

He thought giving Housing Corporation funding for affordable housing direct to accredited developers could freeze out housing associations.

Go to for more information on the report, Housing London 鈥� Delivering Solutions.

The report鈥檚 proposals for policy change

• Housing Corporation should give forward funding to projects lasting several years
  
• accredited private developers should be funded by the Housing Corporation to deliver affordable housing
  
• boroughs should 鈥済ift鈥� land for social housing developments
  
• fast-track planning for mixed developments or major developments approved by the mayor
  
• reduced affordable homes targets for contaminated land
  
• housing associations should make compulsory purchase orders
  
• increased funding for shared ownership
  
• the private sector to clear planning backlogs
  
• planning qualifications should include PFI, negotiation and development appraisal skills