While recent reforms of Right to Buy (RTB) precipitated a sharp
uptick in applications from people wanting to buy their council
houses, local authorities see long-term benefits from them for
boosting their stock of social housing, a new survey by the Local
Government Association has found.
The survey, delivered in partnership with the County Councils
Network and District Councils Network, sought to understand the
impact of changes to RTB by the Government in 2024.
The changes included the reduction of discount levels, increased
flexibility in the use of receipts, an increased cost floor
protection period, and removal of the acquisitions cap.
They were introduced to protect social housing stock and give
local authorities more flexibility and control over the scheme in
their areas.
The LGA has long called for reform to RTB, with a view that the
system could be improved to support the replacement of sold homes
and to stem the continued loss of existing stock.
As a result of the changes, many councils feel more positive
about housebuilding in their area and that they will be able to
invest more in their housing stock.
The survey found that:
- On average, a total 527 RTB applications were received per
authority in 2024/25.
- Two-thirds of RTB applications (67 per cent) in 2024/25 were
received in the three weeks immediately following the
announcement of changes at the Autumn Budget, before the
reduction in discounts came into effect.
- Just under half of councils (44 per cent) had made use of the
increase in the maximum permitted contribution to the development
of new stock from RTB receipts already, and many called for the
further extension of this flexibility beyond the 2025/26
financial year, which Government have now committed to in their
consultation
response.
- Around half of all respondents (48 per cent) felt more
positive about council housebuilding to a great or moderate
extent as a result of reforms introduced in the past year.
- Just under a quarter of respondents (23 per cent) reported
that new housing stock schemes had been unlocked or become viable
due to recent reforms.
Despite the positive reforms, around half of councils (52 per
cent) reported that they have not been able to unlock any new
schemes yet. Respondents emphasised that budget constraints on
the Housing Revenue Account (HRA) remained a barrier to the
viability of new schemes.
To build on these reforms, the LGA is now calling on the
Government to remove the time limit on the use of Right to Buy
receipts, and for councils to have the ability to set discounts
locally.
Cllr , Chair of the LGA's Inclusive
Growth Committee, said: “This survey shows that despite a
short-term spike in applications of council houses, these reforms
will have a positive impact for councils over the long term.
“Local government is central to addressing the housing crisis
that the country is facing, and these reforms will help councils
maintain their existing housing stock, as well as expanding.
“The Right to Buy reforms are a step in the right direction for
councils as they seek greater control over their housing stock,
but we urge government to go further to ensure that the local
government is fully empowered to deliver the homes we desperately
need.”
Cllr Richard Clewer, Housing and Planning Spokesperson for the
County Councils Network, said:
“England's counties contain some of the most unaffordable
housing outside of London, so these reforms from government to
allow county unitary councils to protect and invest in their
housing stock are important.
“These reforms are long-term in their focus, so we support
both the Local Government Association and District Councils'
Network's calls to make them permanent, particularly the ability
to use 100% of Right to Buy receipts on replacement stock.”
A District Council's Network Spokesperson said:
"We welcome the government's comprehensive Right to Buy reforms
which should make a real difference for district councils.
“The reduced discounts, extended cost floor protection, and
permanent flexibility to use 100 per cent of RTB receipts will
give councils much greater confidence in their long-term housing
strategies.
“While we've seen the expected spike in applications, these
reforms represent a fundamental shift towards protecting and
growing our social housing stock."
Notes to Editors
The online survey was distributed via email by the LGA's Research
and Information team to all Directors of Housing within
stockholding authorities in England. It was open for responses
between 28 May and 30 June 2025. Among the 223 stockholding
authorities in England, 73 responded to the survey – a response
rate of 33 per cent.
