The Association of London Government research found that vulnerable people whose housing needs are often acute are being ignored as a result of the government's commitment to key-worker housing.
The report, produced after interviews with councils, tenants' representatives and social landlords, added that the schemes are only accessible for the relatively affluent.
In some areas of London, households need to be earning at least £50,000 a year to access shared ownership, it found.
Tony Newman, the ALG's housing chair, said: "The debate in London is obsessed with key workers – but do we need the numbers we've been getting? We want an extensive review of what is being done in this area."
He said high incomes were required to access key-worker housing in expensive areas.
"The very people it's designed to help can't get on it," he said. "It's public money, and it must reach the right people."
The revised Key Worker Living programme was launched in March with £690m of government cash (HT 26 March, page 28).
The ALG's research concludes that more socially rented housing is needed to help the 60,000 people who remain in temporary accommodation and the 61,000 people living in overcrowded conditions.
Just 4100 social rented homes were built in the capital last year, it reveals.
The research will be published on 14 July and housing minister Keith Hill, who is to speak at the report's launch, has promised to consider its criticisms.
The report will also express strong concerns over the provision of new homes in the Thames Gateway, questioning the quality of the communities created and their location.
Newman said: "The Gateway should get the infrastructure investment needed to ensure the communities are desirable and sustainable."
The report also warns that not investing in areas of London outside the Gateway would be a "fundamental error", highlighting fears that places outside the housing growth areas of the South may be starved of development grant.
Source
Housing Today
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