THE chief executive of Worcestershire's biggest social housing provider has criticised David Cameron's tactic to create "Generation Buy" - saying too many people will be priced out.

Guy Weston, the boss of Fortis Living, says the Prime Minister's new policy will result in fewer rented affordable homes being built across Worcestershire.

At last week's Conservative conference the premier asked councils to ditch planning laws which compel developers to include an element of rented social housing in new schemes.

Instead councils must use their powers, known as Section 106 agreements, to force developers to include affordable homes for purchase instead.

The so-called starter homes will be sold at 20 per discounts off their true market value and capped at no more than £250,000 outside of London.

Fortis Living owns more than 15,000 units of social housing around Worcestershire and has a turnover of £75 million, making it a huge player.

Mr Weston said: "There is a need for more affordable homes for rent and purchase - what David Cameron has come up with won't result in that.

"Anything that helps provide more affordable housing is a good thing, but this doesn't close the affordability gap.

"We're in an area where pay is on the low side - for a starter-home of £250,000 you'll need earnings of £50,000 to qualify.

"What it probably does mean is that we'll build less rented homes.

"We delivered, both ourselves and with our partners, 600 units last year but the job just became a lot harder.

"We'll continue to work with housebuilders and we're fairly confident we'll still provide more homes for rent, but there will be fewer.

"And that's shame because there really is a demand for it."

Social housing tenant Doug Padgett, 58, of Hathaway Close, Dines Green, rents his property from Fortis.

He said: "My worry is that the rental market will become saturated, most people can't afford to pay the prices to buy.

"He (Mr Cameron) is portraying a long term goal but I wonder what the short term impact will be, because there will be one."

Elsewhere Sanctuary Housing, one of the UK's biggest social housing landlords based in Worcester, says Mr Cameron's vision matches its own.

The organisation's future business plan relies more on affordable homes for sale rather than rent.

David Bennett, the group's chief executive, said: "We've always built housing both for rent and sale, with Sanctuary developing more homes last year than any other social housing provider.

"Our business plan contains a larger proportion of housing for sale in line with Government policy including more starter homes."

Mr Cameron says he wants the nation's young people to move from "Generation Rent to Generation Buy", insisting too many 20 and 30-somethings cannot afford to move out the family home.

Mr Cameron wants 200,000 extra starter homes for sale across Britain by 2020.

The policy will still have some flexibility so councils that wish to keep on asking developers to build some rented social housing alongside units for purchase, can do so - although the focus must be on the starter homes.