Camden Town Hall is eyeing up development prospects for Hampstead Community Centre in a bid to raise funds for schools and council homes in the borough.

The major overhaul of the centre could include a residential development in the former coach house in Hampstead High Street as Camden Council looks to release cash from its high-value property portfolio under the Community Investment Programme.

The centre currently hosts an outdoor market for independent traders and has a hall for clubs for the elderly and young. There is no suggestion that these facilities will be affected as part of the changes.

Cllr Chris Knight, interim chairman of Hampstead Community Centre, said: “In these chastened times one has to look at the council’s position and they are trying to get more money out of the site.

“What we (the charity) are trying to do is look at the long-term benefits. None of the services will be cut and what we are trying to negotiate is a building fit for purpose.”

The charity is nearing the end of its lease on the centre and is waiting for the council to approach it with a firm proposal.