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Tory MPs have blocked a last-ditch attempt to stop £450,000 houses for sale replacing 'real' affordable homes.

Peers twice tried to stop the government forcing councils to allow Starter Homes as part of 'affordable' quotas - meaning they will oust social housing for rent.

But their bid was defeated again last night in the House of Commons after Tory ministers dug in their heels.

David Cameron 's flagship Starter Homes pledge offers first-time buyers a new property for £250,000 (£450,000 in London) after a 20% state-backed discount.

But the government's former housing chief Lord Kerslake led protests against plans to count the homes as "affordable".

That means they could fill rented housing quotas "at the expense of lower-income people in desperate need", he said.

The House of Lords forced 13 changes on the Housing Bill in the first round of debate - but they were all blocked by Tory ministers last week.

So Lord Kerslake relaunched his fight in the second round, winning a fresh Lords vote that meant councils would not be forced to allow Starter Homes if they have an affordable housing shortage.

His amendment was one of five new defeats inflicted on the government in the second round.

But all five amendments were blocked again last night by Tory MPs.

Another would have forced the government to replace sold-off council homes, which are being flogged to fund extending the Right to Buy, like-for-like.

The others would have introduced tougher carbon standards, sustainable drainage and a 'neighbourhood right of appeal'.

Ministers backed down slightly on carbon standards and sustainable drainage, agreeing to launch a review, and put forward a compromise on neighbourhood right of appeal.

Yet they refused to budge on Starter Homes and like-for-like replacements.

(Image: WPA Pool)

Housing minister Brandon Lewis slammed peers for meddling with the bill, saying: "No one is going to get in the way of our manifesto commitment."

The plans will return to the Lords for Round Three - but ministers have attached 'financial privilege' to their plans, which limits the options for the Lords to fight them further.

Ministers did previously make a small climbdown on what peers said would a damaging aspect of their Starter Homes.

They agreed to introduce a sliding scale to stop buyers trousering a full taxpayer-funded discount - worth up to £110,000 - if they sell up after five years.

They refused the Lords' bid to make the payback period last 20 years, but said they would examine the best way to go forward.

The government also made a last-minute U-turn last week over 'Pay to Stay' - which will hike council tenants' rent if they jointly earn more than £31,000 (£40,000 in London).

Tenants will now pay no more than 15p in every extra pound they earn, not 20p as suggested, and the threshold will rise every year in line with the Consumer Prices Index.

'Income' will also only be defined as taxable income - so it will exclude all benefits.