SIR - Once again, we read in (Councillor Mike Layland's letter, April 7), that he does not support the income from the sale of former council houses being invested in building new homes.

Since Coun Layland is confused about the numbers, I will try to explain. When the council sold its housing to Worcester Community Housing, a legally binding agreement was signed whereby the first £7 million of income from sales would be paid to the council. So far, it has received more than half of this cash. And the council will continue to receive half of such income after the first £7 million.

This money can be used to help attract more cash from the government, through the Housing Corporation, and thus build many more new affordable homes. Since these homes would be managed by a local housing association, local people would occupy them, including some of the 3000 on the city's waiting list.

Councillor Paul Denham.

Worcester.