Labour launched a stinging attack yesterday on the government's plans to for council houses to go on sale for an unprecedented 70 per cent discount under right to buy this year.

Labour said that more needs to be done now to tackle the lack of social housing.

The government has pledged that the proceeds of the sales will be directed into new social housing. But Grimsby Labour MP and chairman of the council housing group of MPs Austin Mitchell said that by selling off more council houses in the current climate the government "will diminish stock they could use for the most urgent cases."

He also had some criticism for his own party, telling the Star: "I don't see why Labour is not committed to making sure that half of new homes built are used for renting."

Labour said the government was failing on its promise to replace each and every home sold under right to buy and reiterated the party's pledge to build 200,000 homes if it wins power in 2015.

Communities Secretary Eric Pickles said increasing the discount on houses from 60 per cent to 70 per cent of the full market price would drive aspiration and allow an acceleration in the rate government delivers new affordable homes.

The discount now matches that available on flats.

Shadow housing minister Emma Reynolds said: "The Tory-led government has failed to build the homes our country needs. Housebuilding is at its lowest peacetime level since the 1920s, contributing to the cost-of-living crisis families face.

"David Cameron has also broken his promise to replace every home sold through right to buy with another built. Only one home has been built for every seven homes sold."

The changes come into effect at the beginning of the new tax year in April and Mr Pickles said there would be a £100 million fund to boost access to mortgages and provide right to buy "agents" to help people through the process.

The Department for Communities said 13,400 homes had been sold since 2011 under right to buy.