A further 57,000 social homes in England will be lost to Right to Buy by the end of the decade, with no region or local authority capable of providing one-to-one replacements.
An estimated 100,000 homes are likely to be sold through the scheme by 2030, with just 43,000 replaced, according to a report by consultants Savills, commissioned by the LGA, the Association of Retained Council Housing and the National Federation of Arms-Length Management Organisations.
While the discounts are positive for prospective homeowners, councils are left with too little to replace the homes sold. With discounts increasing by a further 10.1 per cent from April this year, in line with inflation, it will become even harder to deliver replacements.
The LGA is urging government to allow councils to set discounts locally and retain 100 per cent of sales receipts. It also wants them to be able to combine receipts with government grant funding, and transfer funding from sales to arms-length management organisations or housing companies.
An LGA spokesperson said: “Every home sold that isn’t replaced risks pushing more families into the private rented sector, driving up housing benefit spending and rents, and exacerbating our homelessness crisis.
“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 Right to Buy discounts mean that one household’s home ownership is increasingly being prioritised over another’s access to secure, safe, social housing.”