MP Meg Hillier has clashed with David Cameron in the House of Commons over the government’s housing bill.

The Hackney South and Shoreditch member asked the Prime Minister on Wednesday “how on earth” the proposals would help her constituents.

She told him the average house price in the borough was £682,000 and rents were soaring, with overcrowding and social housing demand at the highest for 20 years.

Mr Cameron responded by saying: “It is going to help them because we are building starter homes for the first time for people to buy, we are extending the right to buy to housing association tenants so they can buy homes.

“We also have the Help to Buy scheme, which is helping many people get on the housing ladder, and shared ownership as well. “All of those things will help. Since 2010, 101,000 homes have been built in London, including 67,000 affordable homes.

“We need to build many more and to make them accessible to people who work hard and do the right thing. That is whose side we are on.

Speaking after their exchange, Meg said: “The Housing Bill offers my constituents nothing.

“The fact that many so called affordable homes are out of reach of working Londoners shows that the affordability criteria are a long way removed from reality.

“I want to see action on affordable housing. Nurses, shop workers, even people on higher salaries are being priced out.

“This bill will see people even on modest incomes threatened with the prospect of paying full market rent in their council and housing association homes. Ending secure council tenancies means the Government is legislating to deny families a stable home.

“I will be fighting against this Bill when it returns to the Commons.”