Selling off expensive social housing to fund a wave of new building would not work because of Bradford’s diversity, senior politicians in the district have warned.

Policy Exchange, a think-tank set up by a Conservative MP, has suggested putting the highest-value properties on the market when they become vacant would generate £4.5 billion to build up to 170,000 social homes a year.

In its report, Ending Expensive Social Tenancies, the influential think-tank said properties valued at more than the average house price for an area account for one in five of the social housing stock.

It also claims the suggested move could reduce the housing waiting list by up to 600,000 in five years.

Bradford’s biggest social housing provider Incommunities has 4,900 houses in the Aire Wharfe area, 2,643 in East Bradford, 3,032 in the North Bradford area 3,093 in Shipley , 2,760 in South Bradford and 5,905 in the west of the city.

An Incommunities spokesman said it was committed to help meet local housing demand by delivering more affordable homes.

“This is in addition to the 400 plus homes we have successfully built and let,” the spokesman added.

“However, any requirement to ‘sell off’ our most valuable stock in the most desirable areas of the district would put pressure on social housing in other areas. It would also leave low-paid workers in some parts of the district with no means of securing local affordable homes that meet their needs.

“We are currently working with construction partners to develop a number of sites across the district and have funding approval to build around 230 more new affordable homes.

“In addition we continue to take a flexible approach to helping people onto the housing ladder.”

The report has been met with derision by some of the district’s councillors and MPs, with Bradford West Respect MP George Galloway calling it “tantamount to social engineering”.

Mr Galloway added: “The strength of our communities lies in their diversities. This country is divided enough and the last thing we need is gated ghettos for the rich and plasterboard estates on brownfield sites ringing our cities.”

Councillor Val Slater , responsible for planning on Labour-run Bradford Council, said she got frustrated with the Government and its inconsistency when it came to decision-making.

“We have no high-value housing as interpreted by the Conservative think-tank and I do not think these proposals are really applicable to Bradford,” she said.

Councillor John Pennington, the Council’s Conservative spokesman on housing, said he was “very sceptical” about how the think-tank came up with a blanket suggestion when areas of the country were so diverse.

“I do not think central government could impose something on districts such as Bradford and I don’t think we should be selling off any social housing,” he added.

Bradford South MP Gerry Sutcliffe, (Lab), said the report failed to understand housing needs that people have got.

“Housing trusts and housing associations are strapped for cash and I think this is a knee-jerk proposal,” he said.

Bradford East MP David Ward (Lib Dem) said: “I see very little chance of this becoming Government policy.”