HAs can only replace 1 in 5 homes under preserved RTB

Figures from four stock transfer landlords, all of which already have stock subject to the revamped Right to Buy, showed 343 homes had been sold since discounts were increased, with receipts funding just 71 replacements.

Phoenix, a housing association based in Lewisham, south London, has sold 82 homes since discounts were increased, and has been able to fund just 12 replacements with £2m of retained receipts.

Jim Ripley, chief executive of the 6,000 home landlord, said the policy has had a ‘huge impact’ on the association, which keeps just 28% of the receipts.

‘We have 49 live applications underway at present,’ he said. ‘Our loans are based against the value of our assets and as our stock is reduced as a result of Right to Buy, our borrowing capabilities are reduced.’

Alongside Phoenix, New Charter, Coast and Country, Greenfields and Gentoo have sold a total of 587 homes since discounts increased in 2012, up from just 128 in the three years before.

Greenfields, an 8,100-home landlord, which sold 94 homes and has not yet been able to fund replacements with the £2m it has received, described the policy as one of its ‘key strategic risks’.

Gentoo, which sold 244, was unable to provide a specific figure for the number of replacements started as it used the funds for its general development.

Homes transferred to housing associations by councils remain subject to the Right to Buy, with an individual agreement made on transfer regarding how much of the sales receipt goes to the council.

The Conservative party on Tuesday announced plans to extend the right to buy to a further 1.3 million housing association tenants.