Climb down in housing powers row

The housing dispute has exposed tensions between AMs and MPs

The assembly government has backed down in a dispute with Westminster over powers to provide more affordable housing.

The power to end tenants' right to buy council homes will be devolved but the Welsh Secretary will have a veto on the matter, which is unprecedented.

The assembly government wants the flexibility to suspend the right-to-buy in areas of acute housing shortage.

But MPs were worried a future assembly could abolish the scheme altogether.

A senior assembly government source told BBC Wales: "No one is happy about this, but it was this or lose the powers altogether".

Welsh Liberal Democrat leader Kirsty Williams said it was an "embarrassing climb down" for Plaid Cymru, Labour's coalition partners, and set "a very dangerous precedent for our future Welsh laws".

More to follow.