A London assembly committee has expressed concern at a loophole which allows "affordable" homes to be sold for over £400,000.

In a report published on Tuesday, the committee called for tighter definitions of what constitutes 'affordable housing'.

When property developers wish to build housing, they negotiate with the local borough a 'Section 106 agreement' which ensures that a certain percentage of the development is affordable.

But the AMs said they were "concerned" by claims that housing designated as affordable is being sold for over £400,000.

"Generally it is because the section 106 agreement has not had a tight enough definition of what affordable housing is," said the committee.

"This allows developers to advertise housing as affordable, as it has been defined as such through the section 106 agreement, but sold at prices that do not meet the definitions of affordable housing.

"The committee sees this practice amongst developers as unacceptable.

"They have a key role to play in the delivery of affordable housing and should not be seen to be avoiding their responsibilities."

The committee said that affordable housing should be defined as three and a half times the range of household incomes between £16,400 and £49,000.