A local authority has been slammed by the government for not replacing a single property of the 264 homes sold under the Right to Buy scheme. 

The response by the Department for Communities and Local Government (DCLG) came after Labour's London Assembly member for Waltham Forest, Jennette Arnold, accused the Treasury of "betrayal" for pocketing £86.7m of £412.7m raised by London councils through the council-home buying scheme. 

Housing minister Brandon Lewis revealed the figures in a letter to London-wide assembly member Tom Copley. 

He argued a proportion of income from Right to Buy sales continues to be paid to the Treasury as part of £862m owed by local authorities through a self-financing settlement introduced in 2012. 

Despite this agreement, Ms Arnold called on the government to pay it back and said the £87m shortfall was "contributing to a disturbing housing situation" in Waltham Forest. 

It has now come to light the commitment to build a replacement for every social rented home sold through the Right to Buy scheme is not being fulfilled in Waltham Forest, with zero replacements since April 2012. 

A DCLG spokesman, said: "Since the reinvigoration of Right to Buy, London boroughs have retained nearly £500million for replacing social housing in their local areas.

"Waltham Forest, along with 99 per cent of all stock holding local authorities, entered into an agreement with Government to use the additional receipts from the Right to Buy sales to fund replacement homes at affordable rent locally. 

"It is disappointing that despite holding £18.3 million from 264 additional sales, Waltham Forest has so far failed to deliver a single replacement property."

According to homeless charity Shelter, Waltham Forest is one of 13 boroughs that have made zero replacements for the 2,877 social rented homes sold.

The average ratio for replacement in London is eight to one and is ten to one across England with 26,184 homes sold and only 2,712 replacement homes either started or bought. 

In Redbridge, 133 Right to Buy homes have been sold with 3 started and 44 replaced.  

Political activist Nancy Taaffe of Waltham Forest Trade Unionist and Socialist Coalition (TUSC) called for the abolition of the Right to Buy scheme when she stood as a Walthamstow candidate in May's election.

She said: "In the light of Labour colluding in the idea that there is no money left, they have embarked on wholesale privatisation of land and homes across the borough, using a model that shrinks council house stocks and compounds the problem for our young people looking for truly 'affordable homes'. 

"The development at Fred Wigg and John Walsh, Marlowe Road and Thorpe Coombe are just some examples of phoney regenerations schemes that will compound the housing crisis still further. 

"Right to Buy is an absolute disaster which makes the argument of a like-for-like replacement but it is not the same because the real affordable side of it doesn't exist. 

"We keep losing stock and the next generation will suffer."

The introduction of self-financing the Housing Revenue Account (HRA) in April 2012 meant for the first time in generations, local authorities were able to fully retain the money they receive in rent in order to plan, build and provide services to their current and future tenants. 

This year the council launched its first council-house building programme in over 30 years to build 12,000 new homes in five years.  

The council has been approached for a comment.