Barnet Borough Council could soon start building private homes to sell on the open market.

At a full council meeting last night, councillors voted to look into developing property for sale in the borough, using money from the authority’s general fund.

Conservative councillor and housing committee chairman Tom Davey, who put forward the motion, said the council could use the profits to avoid further cuts to frontline services.

Cllr Davey added: “We know we need to increase supply so it would be prudent and responsible to help provide that. It will transform a derelict piece of land into a much better place.”

Noting the fact that other London boroughs were doing the same thing, including Labour-run Camden, Cllr Davey emphasised the free market ideology underpinning the motion, and said it would reduce the tax burden on people in the long term.

Councillor Ross Houston, Labour’s housing spokesman, said that the authority could learn from Camden Council’s “ambitious” programme, which was using the money to rebuild schools and new offices.

Cllr Houston put forward an amendment to use the money to increase affordable homes in the borough, and to look at ways of increasing the number of affordable homes on council estate regeneration schemes. The amendment also included granting flexible five-year tenancies to long standing temporary tenants living on regeneration estates.

The amendment was rejected after the Mayor of Barnet, Councillor Hugh Rayner, used his casting vote as council was tied 31 for and 31 against, as Councillor Danny Seal was absent.

Cllr Davey's motion was passed with 32 votes, with Labour councillors abstaining from the vote.