The LGA said four in five councils are unable to replace Right to Buy homes because they can only use 30 per cent of sales to build new ones.
It comes as six million people are found to be stuck in rented homes because they cannot afford a mortgage, according to a survey by Generation Rent reveals.
On the face of it, it seems like a no-brainier to suggest that the government should be allowing councils to keep 100% of the money received when a council house is sold. Unfortunately, this would not achieve the desired result, unless it was also possible to find further funding, to build a replacement.
The generous discounts, of between 35 and 60%, with a maximum of £75,000, now offered to those using the right to buy system, means that councils are only getting 30% of an already reduced house purchase price.
It’s unlikely the government will do anything to redress this, given their (currently) covert dislike for social housing.