Social housing tenants earning more than £100,000 will soon be charged full market rent rates.

Announcing the move at the Conservative Party conference, housing minister Grant Shapps predicted the 'Pay To Stay' scheme would raise £56 million to help fund the building of new homes.

He added that it would help to ensure that social housing was provided for the most vulnerable members of society.

According to The Daily Telegraph, he said: "For higher earns on six-figure salaries we're introducing 'Pay to Stay' with a simple message. You can keep your social home as long as you pay a market rent so that we can use your cash to build homes for the most vulnerable people on the waiting list."

It remains unclear how those in housing associations jobs will be able to distinguish when tenants cross the £100,000 line, but it is hoped the move might help social housing be afforded to those who really have a genuine need for it.

Until new legislation is officially introduced, councils' power to increase rent for high-earners will be capped at 80 per cent, but it is thought that the coalition government will push to increase this to 100 per cent as soon as possible.

Localgov.co.uk estimates that the new law will affect around 6,000 social housing tenants.