The Mayor of London has given £11 million to build portable homes in a bid to tackle homelessness.

Mayor of London Sadiq Khan is investing the money into “modular” homes – homes constructed off-site and placed temporarily on land that is unused and awaiting permanent development – to house homeless families.

The initiative is run by non-for-profit organisation Pan-London Accommodation Collaborative Enterprise (PLACE) and aims to deliver up to 200 homes.

Under the plans boroughs wanting to sign-up to the scheme will have to identify a suitable temporary accommodation site and join PLACE which will install the housing units and rent them to boroughs at lower rents.

Mr Khan said: “The rise in homelessness in recent years is a national disgrace.

“Government cuts mean that, too often, London councils are left with little choice other than to offer homeless families expensive housing a long way from their local area.

“I’m pleased to support this new initiative that makes use of modular construction and temporarily vacant sites to help ease some of that pressure and make a real difference to the families involved.”

There are more than 54,000 households living in temporary accommodation – with over four-fifths being families with children.

Tom Copley Labour London Assembly housing spokesperson welcomed the funding.

Mr Copley said: “It is a mark of shame on our capital that thousands of homeless families with children are stuck in the limbo of temporary accommodation and often forced into completely unsuitable and cramped conditions.

“Burgeoning housing waiting lists are also placing huge pressures on local authorities who have already had their budgets and resources stretched to breaking point due to sustained Government cuts.”

The London Assembly also welcomed the funding with the chairman of the housing committee, Nicky Gavron, saying homeless is a “key priority”.