TOWN halls cannot build social housing fast enough to replace homes sold under the right to buy (RtB) scheme, the national body for local authorities has warned.

The Local Government Association (LGA) said that 123,000 households are living in temporary accommodation, with more than 1.33 million households on social housing waiting lists, warning of a “chronic shortage.”

Deputy PM and Housing Secretary Angela Rayner is seeking to tighten the rules around RtB to prevent the loss of social housing and is seeking views in a government consultation on the issue.

In its submission to the consultation, the LGA says councils want more control of the system, including catering for local needs, setting the discount rate and exemption of newly built social housing in perpetuity.

LGA housing spokesman Cllr Adam Hug said: “We are pleased with the steps the government has taken so far, but we urge further reform to ensure local authorities can properly manage the RtB scheme and address the chronic shortage of social housing.

“It is crucial that local authorities are given the power to shape the scheme to fit the needs of their communities.

“Councils want to work with government to deliver the social homes our communities need and help relieve the financial shortage this is placing on councils, and further RtB reform is a crucial way to do this.”

The scheme was introduced by the Thatcher government in 1980 and encouraged council house tenants to buy the homes they lived in.

Councils were forced to sell at knock-down prices.

By 1995, 2.1 million council homes had been sold, severely depleting the housing stock.

One-third of those sold had fallen into the hands of private landlords.

The Ministry of Housing, Communities and Local Government was invited to comment.