Tesco is to pioneer a scheme offering affordable homes to key workers 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 at low rents, and 13 of those will 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 for its large London supermarkets, and the scheme is designed to ease the problem.

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