The proposed scheme, which is currently making its way through parliament, would see housing associations forced to sell off their most valuable properties to tenants at a discounted cost, with the money used to fund new discounts of up to £100,000 for future housing association tenants.
Using government data, Shelter estimated that Camden would be the worst hit by the council sell-off, with more than 11,700 homes likely to be sold under the scheme – equivalent to almost 50% of the borough’s total council housing stock. Kensington and Chelsea could see 97% of council homes sold off, totalling 6,600 properties.
Outside of London, over 3,200 homes or 46% of total stock could be sold in Cambridge, while York could see over 1,400 homes or nearly a fifth of council housing stock lost to the scheme.
The report also revealed that even once homes are sold a £2.45bn shortfall over four years would be left, creating a gap in funding for the discounts of further house purchases and replacement stock.
Campbell Robb, Shelter’s chief executive, said the scheme would force social housing tenants into the ‘expensive and unstable’ private rental sector.
“At a time when millions of families are struggling to find somewhere affordable to live, plans to sell off large swathes of the few genuinely affordable homes we have left is only going to make things worse,” he said.
“The government needs to scrap this proposal and start helping the millions of ordinary families struggling with sky high housing costs. If George Osborne is serious about turning around the housing crisis, the autumn spending review is his last chance to invest in the genuinely affordable homes this country desperately needs.”
In the first major national study, research from Inside Housing magazine revealed 40% of ex-council flats are now rented privately, sometimes for more than four times the previous rental rate.
