“Trying to channel all of the energies of the state into building more social homes is deeply misguided when we really ought to be making it easier to build homes in general.”
The UK already has the fourth highest proportion of social housing stock of any country in the Organisation for Economic Cooperation and Development (OECD).
One in six homes (16.4pc) in the UK is social housing, double the EU average of 8pc.
Mr Burnham has suggested that council housebuilding could be funded by directing all of the Government’s £39bn affordable housing funding, which is spread over a decade, into building social-rent homes, or around £3.9bn per year.
According to The Housing Forum, the cost of building an average-sized three-bedroom semi-detached house is now £251,700, even if the land provided is free.
Average social rents in England are typically charged at around 40pc of market rates, much lower than properties that are classed as “affordable rent”, which typically means 80pc of local market rates.
The average rent on a social home in England is £5,942 per year, which is £338 less than the £6,280 that it costs to manage and maintain the property, according to the Regulator of Social Housing.
In London, where average annual social rents are £7,380 compared to £8,720 in annual maintenance costs, councils and housing associations lose £1,340 per year per property.
Mr Hopkinson said: “Spending £3.9bn per year on social housing would not be an ‘investment’ but an outright cost to the taxpayer.
“Switching from affordable rent to social rent housing, and building more of it, will make the costs even higher.”
Social housing tenants typically pay their discounted rents using housing benefits.
The UK has the highest spend on housing benefits as a share of GDP of any country in the OECD at 1.38pc, double that of France.
A government spokesperson said: “Social housing has a vital role to play in helping hard-working families and lifting children out of poverty and homelessness.
“Our £39bn investment in social and affordable homes will help tackle the housing crisis head on, giving local people the support and stability they deserve so they can join the workforce, support the economy, and thrive in their community.”
