I work for my local council. Here are a few points that may interest you...
Only 78 councils still own Housing stock. Croydon is one of them and is one of very few councils still building houses.
The government doesn't like councils owning Housing - every few years tenants are given the chance to vote whether to stay with the council or have all the property transferred to a Housing Association. This is called a 'Stock Options Appraisal'.
If tenants vote against transfer then the council will still be forced to re-examine the issue 2 or 3 years later. Even if - as in where I work - it costs a load of money and over 90% of the tenants who voted wanted to stay with the council.
Where I work 60p in every £ paid in rent is taken away from our tenants and used to subsidise inner city areas.
If the tenants vote for stock transfer then all the rent is ploughed back into local housing. This would mean, for example, that every tenant could have a new kitchen and bathroom the first year. The downside of this is that Housing Association tenants do not have the same right to buy etc.
You can usually buy your Council property once you have lived there for 2 years. However - the government forces councils to cap the discount. So where I live & work the discount is capped at £34,000 even though the average 3-bed terraced council house could be worth about £220K. Still quite an attractive discount but most council tenants can't afford it. I think last year the number of houses sold was in single figures, despite the fact that we manage 10,600 properties.
In fact at the moment it's probably a good thing that properties aren't being sold as the council can't build any new ones with the money.
Instead they are giving land to Housing Associations for development in return for the right to allocate some of the tenancies from our Housing Needs Register.
We have over 3,000 waiting for housing and the Borough's target for affordable units to be built in the area is 100 per year.