The pilot development in Streatham, South London will include 13 flats for Tesco employees

Tesco is to pioneer a scheme offering key employees the chance to live in affordable homes in South London.

The supermarket giant is building 250 flats, an ice rink and a leisure centre next to its superstore in Streatham. Of the 250 flats, 100 will be let out on low rents to key workers, with 13 to be allocated to Tesco employees.

A housing association will buy and manage the flats and select tenants. The Tesco staff will be treated the same as other tenants, and will be entitled to stay in the flats should they wish to leave the company.

The supermarket has reportedly found it difficult to find local staff in its major London supermarkets, and the scheme is designed to help solve the problem.

If the Streatham scheme is successful, Tesco could roll it out to over 20 planned developments across the country.