A change in the law over council housing will lead to thousands of people taken off the waiting list, a council chief has confirmed.

Epping Forest District Council has written to 1,000 people on the housing register and is due to write to another 2,000 over the next two weeks, telling them they will not have a place from September, unless they successfully appeal.

Roger Wilson, assistant director of housing at the council, said: “The government said it no longer wanted people languishing on waiting lists when they have no realistic expectation of being housed.

“It gave councils powers to manage their housing stock.

“Under our new criteria, people need to have a housing need, have lived in the district for at least three years, not have caused any anti-social behaviour and not be able to afford to buy their own house.”

He said all but the most desperate – homeless people, or those with medical conditions or in overcrowded, crumbling housing – would be taken off the council’s 7,000-long waiting list.

Its new system, made possible by powers handed to it in the Localism Act 2011, will see three tiers set up, with about 120 people, in most desperate need of housing, at the top.

Everyone at the bottom of the current list, in Band 6, is set to be removed, except for older people seeking sheltered accommodation, which is harder to rent out.

The announcement comes after the Guardian contacted the council over the case of 42-year-old mother Lisa Morris, of Loughton High Road, who was one of the first 1,000 to be told she was being taken off the list.

Mr Wilson said: “In 21 days, people can appeal the decision and we will consider it.

“If circumstances change, people can always make a fresh application.”