Thousands of Peabody tenants will not be able to exercise their Right to Buy following a deal struck between the major housing association and the government.

Under controversial plans set out in the government’s Housing and Planning Bill, housing association tenants will be given the opportunity to buy their home at a £103,900 discount, funded by the forced sale of “high-value” council homes. Currently, only council tenants are eligible.

However, Peabody, which manages 2,500 homes in Islington, has been granted an exemption for homes built before 1974 with the original charitable donation from the American-British financier and philanthropist George Peabody.

In a statement, Peabody said: “We support home ownership. However, we would not want to sell homes built using the original charitable donation from George Peabody. Neither would we think it right to sell homes built or acquired with no public grant.

“The voluntary agreement between the housing sector and government means that decisions on sales under right-to-buy legislation rests with the board of trustees. We will offer help for people to buy an alternative property where the right to buy their own home is not applicable.

“We are keen to keep as much as possible of our heritage stock in central London available for the benefit of future generations of renters.”

The bill, which is going through the Lords, will be further debated on April 11

• Keywords
  RIGHT TO BUY, SOCIAL HOUSING
• Geographical keyword
  ISLINGTON (LONDON BOROUGH)
• Persons keyword
  Peabody Housing Association