Desperately-needed new social homes could go unbuilt unless
councils are granted an extension to the time they are allowed to
spend money from Right to Buy sales, the Local Government
Association warns today.
Currently, councils are allowed to retain receipts from Right to
Buy sales for three years to invest in replacement housing,
before they have to return them to the Government if they are
unspent.
With the building of new homes delayed or stopped altogether by
the coronavirus crisis, many councils are concerned that they
will not have the opportunity to spend the RTB cash on replacing
much-needed homes sold under the scheme.
The LGA, which represents councils in England, says councils need
to be given at least five years to spend RTB receipts to avoid
the coronavirus crisis exacerbating the current shortage of
social housing.
Cllr David Renard, the LGA’s housing spokesman, said:
“The coronavirus crisis has understandably brought many
developments and the creation of new homes to a standstill and is
holding back councils from building and replacing much-needed
social housing.
“Money generated through Right to Buy sales is vital in enabling
councils to replace sold homes.
“Councils need more time to spend this money. This is critical if
we are to get building again once the coronavirus pandemic passes
and we begin the national recovery.”
NOTES TO EDITORS
There were 79,119 homes sold under RTB between 2012/13 and
2018/19. With councils only able to use a third of each retained
RTB receipt to build a replacement home, they have only been able
to replace around a quarter (21,720) of these homes sold in the
same period.
