The umbrella body for housing associations is asking its members to support a deal which would see them deliver right-to-buy initiatives, in return for the government abandoning legislation.
The Conservative Party unveiled plans to give housing association tenants the right to buy their homes in its manifesto, but housing associations objected to being forced to sell off assets.
The National Housing Federation, the infrastructure body for housing associations, warned that the proposals could be against charity law, because they would force charities to sell off property at less than market value.
The NHF believes that a voluntary deal with government would safeguard the independence of housing associations, many of which are charities.
The NHF drew up the deal after discussions with government and presented it to members this week at its annual conference.
It also wants the government to fund the discount that individuals receive to buy their house. This would mean that each home sold could be replaced so that the social housing stock is not diminished.
David Orr, chief executive at the National Housing Federation said: “I am confident that our membership will see that this is a good proposal: one that’s good for housing associations and their tenants. Housing association households could get the opportunity to realise their dreams of home ownership, and housing associations would be able to replace the homes sold, boosting the nation’s housing supply.
“It also means housing associations could retain the independence which has allowed them to channel billions of pounds in private investment into home building over the last 30 years.
“Housing associations have always been committed to helping their tenants get on in life, whether that’s finding a job or buying their first home. So we are urging our members to sign up to work with government to deliver this new right-to-buy proposal."
Greg Clarke, Communities Secretary at the Department for Communities and Local Government, said: "There is no reason why signing a tenancy agreement with a housing association should mean signing away your aspirations to be a homeowner."
He added: “The first is that the opportunity of extending the fight to buy will be embraced by the sector. In keeping with the housing association tradition to empower and meet the needs of their tenants, associations would give the chance - not just of some of your tenants, but to every one who wishes to take it - to own their own home.
"The second part of David's proposal is that the sector will be a major force in building new homes. Every home sold would trigger a new home being built by a housing association, on a one-for-one basis. For every tenant who exercises the Right to Buy, our housing stock would rise by one.
"The third part of David's proposed agreement, is to make an historic change, to provide the means for every tenant who wants to - new or existing - to have the opportunity to acquire a stake in a home that can increase over time."
A DCLG spokesman said: "The NHF have voluntarily come forward with a proposal, which the Government will now consider."
NHF members have been given eight days to decide and a policy document outlining the proposals is available for members on the organisation’s website.
