Former Conservative Chancellor, Philip Hammond, has started work on setting up a for-profit housing provider.

He will be working with Sir Lynton Crosby on the venture, the former strategist that helped Boris Johnson into power during his time as Mayor of London.

It is understood that he has held talks with local authorities in England, including Barking and Dagenham in east London, which has more than 7,000 households on its waiting list.

The company is apparently due to attempt to buy homes that were sold off through the Right to Buy scheme.

Sir Crosby told The Times of the venture: “The business is at an early stage of development and is discussing potential projects with a number of local authorities.

“Former chancellor Philip Hammond has been supportive of our plan for the business and has been assisting us as we roll out our model.

“We hope to conclude arrangements for him to take on the role of chairman of the company shortly and play an active part in delivering our social objectives.”