by Lamiat Sabin

“SERIOUS concerns” over extending right to buy to housing association tenants will be voiced by the former head of the Civil Service in his debut House of Lords speech this week.

Housing provider Peabody chair Lord Bob Kerslake will warn tomorrow that the extension will do nothing to heal the shortage of homes.

Around 1.3 million housing association tenants in England are set to be offered huge discounts to take out mortgages on their secure-tenancy properties.

Lord Kerslake told the Observer: “I will raise my serious concerns about the policy in its current form. It’s wrong in principle and wrong in practice. It won’t help tackle the urgent need to build more housing and more affordable housing in this country, particularly in London.”

Housing associations, as private-registered social landlords, will have to be compensated by councils for shortfalls between values of property and how much they are sold for.

Three London boroughs warned that they would need to sell 3,500 of their most expensive homes in total to raise those funds, the Star reported on Friday.

Housing Minister Brandon Lewis said that it is “right” that councils sell their assets to pay for the right to buy extension and “guaranteed” replacements of homes.

But the Tories broke that guarantee over the last five years, said Labour MP and shadow local government secretary Emma Reynolds.

"No-one will believe their promises now. More of the same will lead to an increase in the number of families desperate for a home at a price they can afford.”