This eleven year old Guardian article from Andy Beckett is worth a reread:
www.theguardian.com/society/2015/aug/26/right-to-buy-margaret-thatcher-david-cameron-housing-crisis
Extract:
[Thatcher’s] administration, supposedly dynamic and new, in fact partly lived off [the] social capital that stodgy old social democracy had produced. What would happen when that social capital began to run out, like what would happen when Britain ran out of cheap housing, was, in the early 1980s, a question for another day.
Unusually among Thatcher’s ministers, Heseltine had some sensitivity to the wider consequences for housing of right to buy. He successfully argued that councils should be allowed to keep three-quarters of the income from sales, in order to replace the homes sold. Contrary to right to buy’s small but growing number of critics since the 80s, the policy did not kill council home-building overnight: more than 250,000 state-owned dwellings were completed between 1980 and 1985.
But the rate of construction did slow, year by year. The share of the income from sales that went to councils was gradually eroded, against Heseltine’s wishes. In 1983 Thatcher moved him to the Ministry of Defence, in large part to use his bulldozing charisma against CND and the women of Greenham Common.
Meanwhile rents for remaining council tenants rose with a new alacrity. By 1991 they were 55% higher, relative to average earnings, than they had been 10 years earlier. “If it were not for the right to buy,” conclude Jones and Murie, “the council housing sector as a whole would have generated huge surpluses [from rental income] and the rise in real rents ... would not have been necessary.” Or to put it more directly: home ownership was made possible for wealthier council tenants through discounts paid for by their poorer neighbours.
And now over 40% of former council housing stock is in the hands of private landlords (over 70% in some parts of the country). Many tenants need to claim housing benefit to meet the extortionate rents they charge. Housing benefit going straight into the pockets of landlords. What a racket.
Rent control now, Rayner, to stop this profiteering.