Right to Buy reforms apparently are needed when a recent report highlighted that 36 per cent of council homes that were sold under the Right to Buy initiative are now owned and rented out by private landlords.
Within London the Tower Hamlets borough with one of the highest levels of unemployment, has just over 50 per cent of the former council houses that are privately rented.
John Biggs, Labour's London Assembly Member for City and East, states that this is one of the main reasons why the council has had to invest so much more into housing benefit.
Mr Biggs said: "This shows that Right to Buy is poor value for money to taxpayers. Not only did they pay to build the home in the first place, they then subsidised the considerable discounts offered to tenants and then missed out on the rental income that would have covered the build costs.
"Now, we have the indignity of London boroughs renting back their former council homes at higher market rent levels, once again costing taxpayers through the nose."
The report, From Right to Buy to Buy to Let, wants a new system to be introduced with all local authorities keeping hold of a good proportion of the council houses which are covered by binding contracts to stop them ever being rented privately.
The report also states that it is a necessity that for every council house sold, then a new one must be built with the same size, specifications and charge out the same level of rent.
Mr Biggs added: "Right to Buy has played a central role in causing and exacerbating the current housing crisis.
"Future governments must recognise that the right of a council tenant to buy their home at a discount, subsidised by other taxpayers, cannot be at the expense of the right of the vast majority of people to have a decent, affordable home to live in."
Tower Hamlets - 8,697 council houses have been sold under the Right to Buy scheme and at 50.5 per cent of council homes being rented out privately is the highest in the whole of London. Greenwich stands at 34 per cent with Newham at 26 per cent.
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