The government has today (Tuesday 28 April) confirmed it will
bring forward further reforms to Right to Buy.
Right to Buy is a government scheme allowing eligible council
tenants in England to buy their home at a discount.
Last year the government published its consultation response to
overhaul Right to Buy that will support councils
to better protect and rebuild depleted housing
stock while maintaining a responsible route
into homeownership for longstanding tenants.
New reforms to be brought forward will include:
- Increasing the minimum eligibility period from three to ten
years before tenants can apply to buy their home.
- Amending discount rules so that discounts start at 5% of
the property value and increase by 1% each year up to
the maximum discount of 15% of the
property value or the cash cap (whichever
is lower).
- A 35-year new build exemption period so new social homes
cannot be sold under Right to Buy for 35 years after they are
built.
Since the consultation, the government has also been undertaking
further policy development and analysis to explore more effective
fraud prevention to mitigate vulnerable tenants being pressured
into buying and reviewing how the Right to Buy scheme applies in
rural areas.
The government has already taken steps to give councils more
confidence to ramp up the delivery of new social
homes, including reducing maximum cash
discounts to £16,000 - £38,000 depending on the area.
Councils can also retain all of the receipts
from sales and combine those receipts with grant
funding to build and buy more homes.
The ‘cost floor' protection has been extended from 15 to 30
years, meaning landlords can limit discounts so that the sale
price does not fall below the amount spent on building, repairing
and maintaining the properties. The government has been exploring
further reforms to the cost floor to better protect council
investment in existing homes.
The changes will be brought forward when Parliamentary
time allows.
Additional quotes
Gavin Smart, CEO, Chartered Institute of Housing:
“CIH welcomes the government's continued focus on reforming Right
to Buy and the clear recognition that change is needed to better
protect and rebuild our social housing. The measures confirmed
today are a positive step towards addressing the long-standing
imbalance between homes sold and those replaced.
“We also welcome the further work on fraud prevention and the
scheme's impact in rural areas, both of which are crucial to
ensuring Right to Buy operates fairly and sustainably.”
