Council houses should be allocated on fixed-term deals rather than being granted automatically "for life", David Cameron has said.

The prime minister added that it was important tenants had the opportunity to move to find work, requiring more flexibility in the system.

Those who succeed in getting better-paid jobs should be encouraged into the private housing sector, he said.

Labour said what was needed was "more secure homes, not less".

Mr Cameron said he expected a "big argument" over the proposals.

The prime minister said fixed-term deals for tenants would allow people to move on if their circumstances changed.