Charity calls for council home sales to be suspended to stem housing 'haemorrhage'
Homelessness charity Shelter this week re-ignited the row surrounding sales of council homes.

It argued that an influential parliamentary committee should suspend the right to buy in some areas to stop the "haemorrhaging" of social housing into the owner-occupier sector.

Shelter made the call in its submission to the urban affairs select committee inquiry into affordable housing this week.

It also demanded a reduction in the discounts available in high-demand areas and denounced the continued sell-off as "dramatically eroding" social housing stock.

A spokesman said: "Right to buy does not make economic sense. Sales generate average receipts of £28,000 per home.

"The average cost of each new unit of social housing is £50,000 – a loss of over £20,000 per home, making over £1bn in total."

The charity is also campaigning for an extension of the discount "clawback" period beyond three years and for the "cost floor" liability period to be increased to more than 10 years in areas of high demand.

The continued sell-off will lead to an economic and social time bomb

George Brumwell, general secretary, UCATT

Public sector union UCATT has also issued warnings about council sell-offs. Speaking at its annual conference, general secretary George Brumwell told delegates the continued sell-off of council housing would lead to "an economic and social time bomb".

UCATT convener Neil Vernon said: "We understand why right to buy is popular with tenants.

"What we would say is for every council house sold off, another social housing property should be built in its place. Selling on council homes for profit is a reality and there isn't much we can do about it."

Oona King, MP for Bethnal Green and Bow in east London, has also been critical of the scheme and the "business element" involved in selling on council houses.

She told the urban affairs subcommittee on affordable housing: "Around 11,000 social housing units were lost last year.