The governement has confirmed that it is planning to extend its Right to Buy policy to housing association tenants during this parliament.

Stephen Smith, director of Legal & General Mortgage Club and Housing, said: “The extension of the right-to-buy policy to housing association tenants will reduce the number of affordable homes available in the UK when we need a greater supply of suitable housing, not less.

“Forcing the sale of homes at a lower than market value will ultimately disrupt a well functioning sector and make it harder for housing associations to allocate resources and more difficult for investors to lend to them.

“We hope that when more detail on the plans to help home ownership is announced it will include support for custom build in the UK. We know there is a real pent up demand for this sector and, if it gets the right support, it could make a real contribution to achieving the numbers for new house building that we need.”