80,000 councils homes at risk, says LGA

New analysis by the Local Government Association (LGA) has found that at least 80,000 social homes could be lost by 2020.

The study found that 66,000 social rented homes could be sold under the current Right to Buy contract, with a further 22,000 ‘high value’ homes also likely to be sold off in order to fund the extension of the policy to housing association tenants.

The LGA also highlighted that other housing measures such as the cut to social housing rents could make it very difficult for councils to build new homes to replace those which are sold off.

The LGA has proposed that councils retain 100 per cent of receipts following the purchase of any council homes they sell and advise that Right to Buy discounts should be set locally to reflect local housing prices.

Councillor Peter Box, LGA housing spokesman, said: “Councils want to help the government shift spending from benefits to bricks and support measures to help people into home ownership but the Right to Buy extension must absolutely not be funded by forcing councils to sell off their homes.”

Box added: “This loss of social rented housing risks pushing more families into the private rented sector, driving up housing benefit spending and rents and making it more difficult for families to save the deposit needed for their first house – which is now 116 per cent of the average income.

“Councils have long-called for the ability to replace housing sold through Right to Buy quickly and retain 100 per cent of receipts from all sales. This is imperative to ensure that councils can reinvest in rapidly building the homes that people in their areas desperately need.”