By Paul Hutcheon, Scottish Political Editor

SNP ministers are set to place further restrictions on council tenants' right to buy their homes by withdrawing the entitlement from new tenants.

Deputy first minister Nicola Sturgeon recently backed moves to remove the right to buy on new-build council houses. The credit crunch, however, has prompted the SNP administration to consider abolishing the right for anyone moving to a home in the social rented sector.

Sturgeon floated the original plan for restricting council house sales in the context of Scotland having a dearth of affordable housing. The Thatcherite flagship policy transformed the UK into a country of home-owners, but the policy has also been blamed for the depletion of council housing stock.

Sturgeon believes ending the right to buy for new-build council homes will encourage local authorities and housing associations to invest in new properties.

However, the deputy first minister wants to consult on a more ambitious plan to scale back the Thatcher legacy, ahead of a housing bill which is likely to be introduced at Holyrood in the medium term.

She believes there is a case for considering a ban on new tenants in the social rented sector, which includes council and housing association housing, having the right to buy their homes.

The policy would not apply to existing tenants, but only to those who sign new tenancies in the future.

It would also include individuals and families who re-enter the social sector, as well as those who are switching between providers.

Government statistics estimate that around 53,000 new tenants enter the social sector each year, while there are thought to be around 9000 transfers to new tenancies.

A source close to Sturgeon said: "On the basis of the large number of responses to our Firm Foundations consultation that contained requests for us to consider further reforms of right-to-buy, Nicola Sturgeon announced in parliament our intention to undertake a review of right-to-buy over the summer.

"Having met with a number of key stakeholders, we are now developing and assessing options which would further safeguard the supply of social rented housing while not removing existing right-to-buy entitlements.

"The options from the review will be consulted upon at the earliest and most appropriate opportunity."

Graeme Brown, director of Shelter Scotland, said: "We are delighted the Scottish government has decided to lead the way in the UK and close the book on a policy that no longer fits the 21st-century landscape.

"With increasing pressure on affordable housing and the commitment to house all homeless people by 2012, Scotland desperately needs to keep and add to its stock of affordable rented housing. I hope that ministers are able to secure the parliamentary support that this bold move deserves."