Up to 60,000 acres of agricultural land within 16 miles of central London could be built on to reduce the housing shortage in the South East, according to a report published today.

A pamphlet for the think-tank Politeia argues that it would be better to build the houses that are needed in London and the South East where people want them, rather than in "growth areas" up to 70 miles from London, as planned by John Prescott.