Labour is reportedly preparing to let developers sell off newly built “affordable homes” to private buyers in a move critics warn could drain England’s already limited supply of social housing.

Under plans expected to be unveiled this week, developers would be allowed to “flip” affordable homes – originally agreed with councils as part of planning deals – into properties that can be sold on the open market to investors or owner-occupiers.

The policy follows a meeting between Housing Secretary Steve Reed and the Home Builders Federation (HBF), which claims around 8,500 affordable homes are currently sitting unsold because councils and housing associations lack funds to buy them.

The Government says the scheme would be a time-limited fix to “clear the decks” before a wider reset of the housing system.

AFFORDABLE HOUSING RISK

Housing experts, however, warn the plan risks a long-term fall in affordable housing delivery.

“We will lose affordable homes that are already built, and then not build as many in years to come,” one industry insider told The i Paper.

Analyst Neal Hudson, of Henley Business School, questioned how the government could later reintroduce affordable housing requirements once the market improves.

Critics also point to poor build quality as one reason housing associations have rejected some affordable stock. Fiona Fletcher-Smith, chief executive of housing association L&Q, said some shared ownership homes were “not up to scratch.”

With 1.3 million households now on social housing waiting lists – up 165 since 2020 – planners fear the policy could create a precedent for developers to sidestep affordable housing obligations entirely.

A Government spokesperson insisted to The i Paper that the plan was about “getting Britain building” and tackling the “legacy problem of unsold affordable homes.”