London’s housing crisis has reached a critical point with new figures revealing over 330,000 households are currently waiting for social housing – nearly matching the 316,000 council homes sold since Right to Buy began in 1980. This stark comparison has prompted calls for major reform of the controversial scheme.

London Councils, representing all London boroughs, has urged the government to devolve Right to Buy powers to local authorities, arguing that councils need more control over eligibility, exemptions, and discount rates to address their communities’ specific housing needs.

The capital’s homelessness situation has reached unprecedented levels, with more than 180,000 Londoners – approximately one in 50 residents – currently living in temporary accommodation. Local authorities are spending an estimated £4 million daily on temporary housing, putting severe strain on council budgets.

“While the scheme has brought benefits to many Londoners, it has also driven a depletion in London’s social housing stock,” says Councillor Grace Williams, London Councils’ Executive Member for Housing & Regeneration. “In the context of London’s worsening homelessness emergency, boosting the number of homes for social rent must now be the priority.”

The government’s recent decision to allow councils to retain 100% of Right to Buy sales receipts has been welcomed as a positive step. However, London Councils warns that boroughs face a £700 million shortfall in their social housing budgets over the next four years due to rising costs and previous rent caps.

The capital’s council housing stock has plummeted by 45% since 1980, falling from 715,000 to 390,000 homes in 2024. Despite attempts to replace sold properties, strict government rules on sales receipts have historically made one-for-one replacement difficult to achieve.

As pressure mounts for reform, local authorities are calling for more financial support and greater control over social rent levels to enable increased investment in new social housing.