Churches in London are benefiting from an innovative scheme designed to enable them to beat the vast cost of housing.

The London Missional Housing Bond has raised almost a million pounds and already enabled two churches to buy housing for workers doing mission in the communbity.

The bond required investors to put in sums of over £5,000 for which they were rewarded with up to two per cent returns. From individuals and churches, enough was raised to purchase two properties.

They are both now being used by churches in deprived and diverse areas, which, thanks to London's extraordinary cost of housing, would be unaffordable to them otherwise.

Tom Woodbridge, one of the occupants, who recently moved into the flat on the Stafford Cripps Estate near his church - Inspire London - with his wife Rosie, said: "The challenge of building community in the city across the divides of economics and demographics really inspired us. It is early days and it isn't always easy but I can see how being here will really allow us to build relationships from the ground up as genuine neighbours."

The Bishop of London, the Rt Rev Richard Chartres, is among those backing the scheme. "The cost of living in our capital continues to escalate at an alarming rate," he said. "The provision of housing for front-line workers is vital if we are to continue to serve the most needy and vulnerable. Through the Missional Bond, we are embedding workers at the very heart of London's communities where their presence is most needed, allowing us to respond creatively to our calling to share the good news of Jesus Christ in this great world city."

It's hoped the model can now be replicated elsewhere. Tim Thorlby from the Centre For Theology & Community, which helped to create the bond, said, "Social investment is an underused source of finance for the Church and its mission. We hope that this Bond will play a role in promoting a change of attitudes within churches towards the more imaginative use of resources, helping the Church to include social investment as one of its regular habits."