Social housing in England will lose a further 57,000 homes by the end of the decade because of the Right to Buy scheme, according to new analysis by local government leaders.
It estimates that 100,000 homes are likely to be sold through the scheme by 2030.
But only 43,000 will be replaced as significant discounts councils have to give buyers leave them without funding to replace the much-needed homes on a like-for-like basis.
The average discount available to buyers has increased to nearly £68,000 in 2021/22, leading to a quadrupling in the number of sales.
A report commissioned by the Local Government Association (LGA), the Association of Retained Council Housing and the National Federation of ALMOs warns that with the discounts set to increase by a further 10.1% from April this year, it will become even harder for councils to deliver replacements.
The LGA is urging the Government to use the spring budget to allow councils to set discounts locally and retain 100% of sales receipts to avoid such a loss of desperately-needed social housing stock.
Councils also need to be able to combine RTB receipts with Government grant funding, such as the affordable homes programme, and transfer funding from sales to ALMOs or housing companies to give them greater flexibility over how new council housing is delivered.
LGA housing spokesperson David Renard said: ‘Councils want to urgently help people on council housing waiting lists and stuck in temporary accommodation.
‘It is becoming impossible for councils to replace homes as quickly as they’re being sold as they are being left with nowhere near enough money to provide replacements.
‘Rising RTB discounts mean that one household’s home ownership is increasingly being prioritised over another’s access to secure, safe, social housing.’
