Housing Secretary Michael Gove has triggered a storm with plans to scrap rules that force developers to build affordable homes.
Section 106 regulations ensure that modestly priced properties and community projects are included in large building programmes.
But proposals to be outlined in the Queen’s Speech are set to cut the number affordable homes by 50,000 over 10 years.
Mr Gove is planning to replace the scheme with a building levy which would be paid to local authorities.
This could allow them to build more social housing.
However, critics fear hard-up councils may spend the money on other schemes, such as roads.
Figures show almost half of the 58,000 affordable homes in 2019 were funded via Section 106.
Some 14 senior planners, housing officials and house builders have written to Mr Gove opposing the change.
David O’Leary, policy director of the Home Builders Federation, said: “A blunt one-size-fits-all approach could see many sites become unviable and result in a collapse of affordable housing.”
Lisa Nandy, Labour ’s Shadow Levelling Up and Housing Secretary, said: “The Tories have a disgraceful record on this.
“We need to see the detail but we will fight any moves that accelerate the decline of affordable housing.”
Mr Gove’s department said: “The Government is developing models for a levy which enable authorities to capture value from development more efficiently, securing the affordable housing and infrastructure communities need.”