The national voice of local government in England is warning that at least 80,000 social rented homes could be lost by 2020 unless councils are given more power to build homes.
The Local Government Association (LGA) estimates that this drop in affordable council rented housing would shift spending from bricks to benefits by driving up the housing benefit bill by £210m by the end of the decade as more families move into the private rented sector.
Town hall leaders forecast that 66,000 council homes will be sold to tenants under the existing Right to Buy scheme by the end of the decade, and the LGA predicts that councils will be forced to sell a further 22,000 homes in order to fund plans to extend to scheme to housing association tenants.
Councillor Peter Box, LGA Housing spokesman, said councils want to help the government shift spending from benefits to bricks but the Right to Buy extension must not be funded by forcing councils to sell off homes.
"Not everyone can afford to buy,” said Councillor Box.
“With 68,000 people currently living in temporary accommodation, annual homelessness spending of at least £330m and more than a million more on council waiting lists, it is clear that only an increase of all types of housing – including those for affordable or social rent – will solve our housing crisis.
"As a minimum, we forecast that 88,000 council homes will be sold up to 2020.”
Cllr Box said there was a real risk that complex rules and restrictions would combine with certain aspects of the Housing and Planning Bill, and having the unintended consequence of making building replacements almost impossible.
"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% of the average income,” added Cllr Box.
"Councils have long-called for the ability to replace housing sold through Right to Buy quickly and retain 100% of receipts from all sales.
“This is imperative to ensure that councils can [to] reinvest in rapidly building the homes that people in their areas desperately need."
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