The Homes and Communitites Agency regulation committee also wants to introduce measures to prevent high-risk activities by unregistered parent companies from threatening the viability of landlords.
The regulator is concerned the regulatory framework, which was introduced in April, is based on an outdated assumption that all proceeds are re-invested in non-profit activities.
As a result it is considering making for-profit providers pay a premium if they sell a social home on the open market. The money would then be re-used for social housing, along with grant attached to the property.
This is to prevent for-profit providers from exploiting the fact that social and affordable rented homes have a lower value than open market homes.
Social rented homes have a lower value because rents are sub-market and underpinned by benefit. The regulator is concerned that for-profit providers may sell social homes for open market prices solely to boost profits by pocketing the difference in values.