The Government must go further with its reforms of Right to Buy (RTB) to give local authorities more flexibility and control over how the scheme operates locally amid rising demand to buy homes through the scheme since Autumn Budget discount changes, the Local Government Association says.
With more than 123,000 households in temporary accommodation and more than 1.33 million households on a social housing waiting list, we are facing a chronic shortage of social housing. It has become increasingly impossible for local authorities to replace homes as quickly as they are being sold under the current RTB scheme.
In its submission to the consultation on reforming RTB, the LGA recognises that the Government has taken on board the key concerns of councils on the scheme but urges government to go further to ensure that it is fit for purpose and does not hinder the development of good quality, sustainable social housing stock.
The LGA said this should include local authorities given the control, power and flexibilities to shape the RTB scheme to best serve their local housing market and residents’ needs; with the power to set the discount rate, exempt newly built properties in perpetuity and protect their investment in retrofitting or improving their existing stock. Government should also allow councils to retain their RTB receipts indefinitely to ensure delivery of replacement homes is maximised.
As part of the Autumn Budget, the Government announced that discounts for purchases through the RTB scheme will revert to pre-2012 levels and will be more reflective of local housing markets.
During the period 30 October and 20 November after the announcement, councils have seen an increase in the number of RTB applications made by social housing tenants in response to the reductions in discounts available on their properties.
Some local authorities reported receiving more applications in that 3-week period than over the course of a typical year. This has resulted in significant resourcing challenges for local authorities as they try to meet the statutory timescales for accepting applications.
The LGA is calling on the Government to undertake research to determine how many applications were made across the country in this time period, how many applications will be accepted, and the resultant number of social housing stock lost. It then needs to clarify what steps they intend to take to offset this loss of social housing stock if we are to truly resolve the affordable housing crisis.
Cllr Adam Hug, LGA housing spokesperson said:
"We are pleased with the steps the Government has taken so far, but we urge further reform to ensure local authorities can properly manage the RTB scheme and address the chronic shortage of social housing.
"It is crucial that local authorities are given the power to shape the scheme to fit the needs of their communities.”
“Councils want to work with government to deliver the social homes our communities need and help relieve the financial this shortage is placing on councils, and further RTB reform is a crucial way to do this.”
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