Planning and Housing

11.06.18

Council’s ability to replace homes sold under Right to Buy will be ‘all but eliminated’ within five years

The current Right-to-Buy (RTB) scheme could collapse unless councils are granted more cash to replace the homes sold, a report has claimed.

The scheme, championed by Margaret Thatcher in the 1980s, allowed council house tenants to buy their home in an effort to increase home ownership around the UK. Yet the LGA has said that local authorities are running out of money to replace the housing.

According to the figures, over 60,000 properties have been sold to tenants over the last six years. But because the average sales price of the homes are half the market rate, councils only have enough funds to replace 14,000 of them.

“This leaves a shortfall of 46,000 homes which could have provided secure affordable housing for key workers, victims of domestic violence, veterans, people facing homelessness, and others in desperate need of a home they can afford,” the LGA said.

Two thirds of councils will have no chance of replacing homes sold under Right to Buy services on a one-for-one basis in five years’ time, unless “significant restructuring” of the scheme takes place.

Around 12,224 homes were sold under RTB last year. Based on the levels of sales remaining consistent, the analysis estimates that in 2023 councils would only be able to replace approximately 2,000 of these homes.

LGA analysis said that the number of homes sold off reveals that councils have lost enough homes to house the populations of Basingstoke, Worcester, or Lincoln.

Cllr Martin Tett, LGA housing spokesman, said: “We know that the Right to Buy changes lives – it helps people who otherwise wouldn’t be able to get on the ladder experience the security and independence of home-ownership. It is essential that it continues to do so.”

Tett said the government is now in a situation where “fundamental reform” is needed of the way the scheme is funded.

“Councils are closest to their communities and it’s essential this money is reinvested in homes in those areas so our residents can access secure, affordable housing. This money is badly needed to deliver homes for our residents – instead of resting in an account in Whitehall, it should be sent back to where it belongs,” Tett added.

Enjoying PSE? Subscribe here to receive our weekly news updates or click here to receive a copy of the magazine!

Image credit: allinvisuality

Comments

There are no comments. Why not be the first?

Add your comment

 

related

public sector executive tv

more videos >

latest public sector news

CIPFA warns councils against exposing public money to risk in commercial property investment

19/10/2018CIPFA warns councils against exposing public money to risk in commercial property investment

Councils have been warned not to expose public funds to “unnecessary or unquantified risk” when borrowing to invest in commercial pro... more >
Oxford housing plan to build ‘upwards’ approved by city council

19/10/2018Oxford housing plan to build ‘upwards’ approved by city council

Plans to build “upwards” for the first time in Oxford city centre in a bid to tackle a major shortage of housing have been approved b... more >
Council strips contract from NHS trusts and hands it to Virgin after High Court row

18/10/2018Council strips contract from NHS trusts and hands it to Virgin after High Court row

Lancashire County Council (LCC) has awarded a controversial £104m healthcare contract to Virgin Care for the second time after a hearing in... more >

editor's comment

25/10/2017Take a moment to celebrate

Devolution, restructuring and widespread service reform: from a journalist’s perspective, it’s never been a more exciting time to report on the public sector. That’s why I could not be more thrilled to be taking over the reins at PSE at this key juncture. There could not be a feature that more perfectly encapsulates this... read more >

last word

The importance of openness after Grenfell

The importance of openness after Grenfell

Following the recent Grenfell Tower tragedy, Lord Porter, chairman of the LGA, argues that if the public are going to have faith in the safety testing process then everything must be out in the o... more > more last word articles >
CIPFA warns councils against exposing public money to risk in commercial property investment

19/10/2018CIPFA warns councils against exposing public money to risk in commercial property investment

Councils have been warned not to expose public funds to “unnecessary or unquantified risk” when borrowing to invest in commercial property in a statement from CIPFA. In a joint s... more >
Oxford housing plan to build ‘upwards’ approved by city council

19/10/2018Oxford housing plan to build ‘upwards’ approved by city council

Plans to build “upwards” for the first time in Oxford city centre in a bid to tackle a major shortage of housing have been approved by the city council. The new plans will focus ... more >

the raven's daily blog

What cities should become

15/10/2018What cities should become

Tom Leaver, project manager at Future Cities Catapult, examines the rationale behind the creation of the City Data Sharing Toolkit, and explores how this is driving a seismic shift in how cities evolve into our data-rich future. We’re used to big-screen sci-fi future cities being dystopian monoliths to everything wrong with the worl... more >
read more blog posts from 'the raven' >

comment

Inspiring leadership in social value

15/10/2018Inspiring leadership in social value

We have learned a lot since the last National Social Value Conference, with many organisations both in the public and private sectors now embeddi... more >
Is fair funding possible, or pie in the sky?

15/10/2018Is fair funding possible, or pie in the sky?

David Phillips, associate director at the Institute for Fiscal Studies, discusses the current health of local government finance, and how a bette... more >
Keeping the momentum of the Northern Powerhouse

15/10/2018Keeping the momentum of the Northern Powerhouse

On 6 September, the biggest decision-makers of the north joined forces to celebrate and debate how to drive innovation and improvement through th... more >
The Convention of the North

15/10/2018The Convention of the North

Steve Rotheram, mayor of the Liverpool City Region, discusses the findings of the very first Convention of the North, which was held in Newcastle... more >

interviews

Keeping the momentum of the Northern Powerhouse

15/10/2018Keeping the momentum of the Northern Powerhouse

On 6 September, the biggest decision-makers of the north joined forces to celebrate and debate how to drive innovation and improvement through th... more >
Michael King: Time for Ombudsman reform

06/08/2018Michael King: Time for Ombudsman reform

Michael King first joined the Local Government Ombudsman service back in 2004 as deputy ombudsman. At the start of 2017, he was appointed as the ... more >
Helping a city understand itself

06/08/2018Helping a city understand itself

SPONSORED INTERVIEW The urban landscape is changing. How can local authorities keep up with citizen behaviour? Stephen Leece, managing directo... more >
Modern policing: the future is bright

06/08/2018Modern policing: the future is bright

SPONSORED INTERVIEW The public sector, and policing in particular, has often been criticised as being slow to adapt to change. But now, says L... more >

public sector focus

View all News