Districts could be forced to scrap plans to build an extra 42,000 homes over the next 30 years if social housing rents are lowered, a new survey has warned.

The research conducted by the District Councils' Network (DCN) found the policy would reduce income by £10bn over the next 30 years, putting plans to build 42,000 new homes at risk.

Director of DCN, Steve Atkinson, said: ‘A 1% rent reduction is good news for existing tenants, but for future tenants the survey shows an effective 3.5% overall reduction would have a significant negative impact on districts' plans for building new housing stock without measures to secure a more effective balance between the needs of present and future tenants in the longer term.

‘It is a concern that some activity has stalled already as a result of this announcement, and the level and speed of response from DCN members highlights just how strong are their concerns.'?

 DCN chairman, Cllr Neil Clarke, has formally requested a meeting between DCN officers and senior housing and finance policy officials at the Department for Communities and Local Government (DCLG).