Prescott plans ban on council flat sales

John Prescott is reported to be planning to ban some council tenants from buying their homes in an attempt to curb desperate housing shortages in the South-east of England.

The move by the Deputy Prime Minister would end a policy that has run for nearly 20 years andoverturn Labour's pledge before the last general election to uphold the principle of right to buy. This would risk allowing the Conservatives to make in-roads in Labour's heartlands once again.

Mr Prescott said last week that it was "daft" that some people were buying their homes in London and the South-east at a loss to £25,000 per dwelling to the Treasury.

He suggested that Labour's urban policy summit this autumn could see a change in policy, with the discounted sales scheme suspended in some property hot-spot areas.

A spokesman for the Office of the Deputy Prime Minister said last night that current policy on right to buy remained unchanged but research had been commissioned by the department into increasing claims of abuse of the system.

Many council homes in London and the South-east are in highly desirable areas that have been gentrified in recent years. Mr Prescott is worried that sales could undermine his plans to offer affordable housing for key workers.