Housing associations cannot be compelled by regulators to sell their homes under the Government’s implementation of its Right To Buy extension, the housing minister has confirmed.

Brandon Lewis told MPs that the voluntary deal would not initially be backed by new regulatory powers to force social landlords to give away their stock at large discounts.

The confirmation means that housing associations who have raised concerns about the policy’s impact on their finances and ability to build homes may be able to resist taking part of the sell-off.

Housing associations borrow against the rental income of their properties to build new homes and the Office for Budget Responsibility, backed by industry figures, has warned that the move would mean fewer homes being built.

Mr Lewis told MPs on Tuesday that though new legislation meant housing associations had a general duty to “promote home ownership” the Housing Ombudsman would not, at least initially, be able to force them to sell homes.”