Parents on council housing waiting lists are being encouraged to give a child to wealthier, childless couples in return for a foot on the housing ladder.

Families with three children or more who are waiting for a larger home in high value areas such as Camden and Westminster can swap one or more of their children in exchange for a smaller property in their local area as part of a trial scheme being launched today.

The children will be given to childless homeowners on adoption waiting lists across the country.

David Cameron said of the pilot scheme, which is being tested in inner London boroughs: “The Baby Steps scheme will tackle two problems with one policy.

“Hard working couples who want nothing more than to experience the joy of having their own children but may have missed the boat due to pursuing careers instead of starting a family are subjected to reams of unnecessary red tape when trying to adopt a longed-for child.

“We should not be punishing people for putting homeownership first while people who are unable to support larger families are living in desirable areas, at the taxpayers’ expense.”

Under the scheme, parents who are on the waiting list for a larger council property due to having more than two children will be encouraged to give up their third child for adoption in return for ownership of a two-bedroom property within a 255 mile radius of their current home.

Additional incentives including outside space, free parking and iPads will be offered, the closer to the birth the child is donated to the scheme.

The government hopes that increasing the supply of babies for adoption will cut adoption waiting lists by as much as 82 per cent.

A reported 800 families in Camden have expressed interest in the scheme before launch.

A spokesperson from pressure group Campaign for Renters And Parents said: “The government’s population redistribution plans are nothing more than overt social engineering of the most disturbing kind.

“We will be opposing these proposals ever step of the way.”

In case you hadn’t already guessed, this was our April Fools’ story.