Local Government Association calls for reforms to Right to Buy amid continued net loss of homes
The Local Government Association has called for changes to the Right to Buy (RTB) scheme in order to prevent the current net loss of social housing stock year on year currently being experienced by local authorities.
In a new position paper, the LGA said councils should be given:
- Control over how and when monies raised through the scheme should be used on the development, delivery or acquisition of new homes.
- Power to protect a council’s financial investment in both existing and new social housing stock from a loss-making transaction.
- Flexibility for councils to shape the scheme locally "so it works best for their local area, housing market and people".
The LGA said the latest figures showed that, for the last financial year, RTB assisted in the sale of 10,896 homes, with only 3,447 replaced, resulting in a net loss of 7,449 social homes in 2022/23.
The paper acknowledged that RTB had delivered home ownership for many. However, it also said that the current form of the scheme “does not work for many of those in need of social housing who are unable to access secure and safe social housing or the local authorities seeking to support them”.
According to the LGA, councils are primarily concerned about the fact that increasing discounts combined with other restrictions on councils' use of Right to Buy receipts, mean that one household's home ownership is increasingly being prioritised over another's access to safe, secure social housing.
Since 2012, discounts totalling £7.5 billion have been given out under RTB, the Association said. It added that this would be further exacerbated following the Government’s confirmation that the maximum discounts available to tenants from April 2024 will increase in line with the Consumer Prices Index (CPI) figure of 6.7 percent to £102,400 outside London and £136,400 in London.
The government’s bid to curtail the net loss of homes with a 2012 commitment to replace those sold on a one-to-one basis nationally, had not been achieved, the LGA claimed.
The LGA said: “Now more than ever the Government must remove the rules and restrictions which disincentivise local authorities from building social homes, at risk of losing them. Councils must be given the control, power and flexibilities use receipt monies in a way that works best for their local areas.”
Cllr Darren Rodwell, Housing spokesperson for the LGA, said: “We are facing a significant housing shortage in this country which has pushed council budgets to the brink as they struggle to find suitable homes for an ever-increasing number of people.
“Whilst the Right to Buy can and has delivered home ownership for many, the current form does not work for local authorities and many of those most in need of housing support are simply unable to access secure, safe social housing.
“It is time for the Government to overhaul a system which has seen our social housing stock significantly diminish. If the Government adopts our proposals this would allow councils to resume their role as a major builder of affordable homes, which support strong and healthy communities and help to build prosperous places.”
Harry Rodd
