The National Housing Federation (NHF) has criticised proposals suggesting that people living in social housing should no longer be entitled to a secure and permanent tenancy.

Under proposals which have been submitted to the Government, new tenants would have fixed-term contracts, with regular reviews every few years.

According to the plans, if a tenant's financial position improved he or she would be encouraged to take an equity share or to move to the private sector. If they refused they could face higher rents. The right to a social home might also be tied to a requirement to have or be actively looking for a job.

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NHF Chief Executive David Orr said: "Introducing regular reviews where people in have to prove how needy they are to retain their home is a very bad idea.

"Forcing people to show they are poor in order to stay in their home would be a disincentive to looking for a job.

"People who live in social housing are disproportionately from low income backgrounds and as such very few of them would be in a position to move or buy.

"If we want those tenants who have substantially improved their financial circumstances to move out of social housing we need to offer them a something they would positively want to move to, such as shared equity in low cost housing, and not beat them with a stick. However, the supply of social housing is so constrained that there are not enough such carrots to go round.

"Also, it is critical to remember that just because a tenant is better off than they once were it doesn’t mean their change in circumstances is permanent - particularly considering our currently insecure job market.

"This proposal could also lead to the ghettoisation of low income groups and undermine the drive to build sustainable mixed income communities of privately-owned and social homes within the same neighbourhoods."

(CD/JM)