SCOTTISH ministers are planning to challenge one of the most iconic policies of the Thatcher era by scrapping tenants' "right-to-buy" for new social housing.

The Sunday Herald understands the SNP government will propose a ban on the sale of new council and housing association homes.

The move is part of a strategy to address Scotland's housing crisis by encouraging local authorities to build new properties.

The idea will be contained in the government's housing green paper, which is expected to be published in the next few weeks.

Scotland is experiencing a crisis in the provision of affordable homes, with more than 200,000 people currently languishing on waiting lists.

The consultation will focus on how to plug the shortages of affordable housing and address the problems in the planning system.

One proposal is to prevent tenants from exercising their right-to-buy on new-build social houses, a ban that would apply to homes owned by councils and housing associations.

Introduced in 1980 by the Thatcher government, the right-to-buy allowed council tenants to purchase their homes at a discounted rate.

Around 400,000 properties have since been sold off, sales that housing experts believe have contributed to the current shortage in affordable homes.

A Scottish government insider said: "As part of our consultation on housing in Scotland, we will look at a range of measures with the overarching aim of improving the housing system and achieving better value for money.

"We will consult on the option of ending the right-to-buy for new-build social housing - only affecting tenants moving to newly-built properties."

The green paper, which will be unveiled by communities minister Stewart Maxwell, expands on the SNP manifesto commitment to "review" the Thatcher policy.

A debate on the right-to-buy is also scheduled to take place at the SNP conference in Aviemore on Friday, where one motion calls for a "full review" of the policy.

The green paper idea won't affect existing tenants, or those who are moving due to their home being demolished or refurbished, but it does chip away at one of the most controversial policies of the 1980s. Such a shift would also require legislation.

The outgoing Labour/LibDem Scottish Executive restricted the right-to-buy in 2001 by allowing local councils to apply for a temporary suspension of the scheme, a tool several local authorities have used.

Aberdeen City Council last month successfully applied to suspend the right-to-buy for a third of its 7000 properties.

Norman Tebbit, a Cabinet minister in Mrs Thatcher's government, blasted the new policy: "I am not surprised the SNP, which is the Nationalist Labour party in Scotland, would do this sort of thing. It is anti-aspiration and goes back to the old idea of the state being the landlord."

But Gavin Corbett, the policy manager at Shelter Scotland, backed the idea: "This is probably the most significant amendment to the right-to-buy since it was brought in, in 1980, so it's strongly welcome. The SNP could also follow up on its manifesto pledge to give councils and housing associations more flexibility on right-to-buy for existing properties."

A Scottish government spokesperson said: "Suggestions that the consultation will invite views on the option of ending right-to-buy for new-build social housing are speculation, and we cannot comment on the detail of the Green Paper ahead of its publication."

l The legacy of right-to-buy: page 2&3