Council house tenants in property hotspots are to be given less assistance in buying their homes, the government has announced.

Announcing new restrictions on the right to buy, John Prescott said he would reduce the maximum discount available from £38,000 to £16,000.

The move is aimed at cooling the over-heated housing market in parts of London and the south east.

The rules will come into force in March when an order will be laid before parliament. Anyone who applies before the date of the order will be eligible for the higher discount.