GLD Vacancies

Local authorities to be handed greater flexibility on use of Right to Buy receipts

Councils are to be given greater flexibility in how they use receipts from the Right to Buy so they can build and buy more social homes, the Government has announced.

The Ministry of Housing, Communities and Local Government (MHCLG) said this includes removing the caps on the percentage of replacements delivered as acquisitions and the percentage cost of a replacement home that can be funded using these receipts, and giving councils the ability to combine Right to Buy receipts with section 106 contributions, with these flexibilities in place for an initial two years and subject to review.

The Government will also review Right to Buy more widely. This will include looking at eligibility criteria and protections for new homes. A consultation will be brought forward in the autumn.

The MHCLG has updated the Retained Right to Buy receipts and their use for replacement supply: guidance document.

The measures in relation to Right to Buy were among a raft of reforms to the housing and planning system announced today (30 July).

The Deputy Prime Minister, Angela Rayner, also confirmed that details of future government investment in social and affordable housing will be brought forward at the next spending review, “so social housing providers can better plan for the future and play their part in delivering the biggest increase in affordable housebuilding in a generation”.

Additionally, the Government has confirmed that at the next fiscal event it will provide councils and housing associations with the rent stability they need to be able to borrow and invest in new and existing homes – “while ensuring that there are appropriate protections for both existing and future social housing tenants”.

The MHCLG added that the third round of the Local Authority Housing Fund will be going ahead, with £450m being provided to councils to acquire and create homes for families at risk of homelessness.

Separately, the Ministry confirmed that Awaab’s Law will be introduced into the social rented sector, with more detail and secondary legislation promised to implement this “in due course”.

Responding to the announcements, Cllr Bridget Smith, Vice Chair of the District Councils’ Network, said: “We are delighted that the Government has listened to our long-standing representations and announced greater flexibilities on the use of Right to Buy receipts and will hold a consultation on wider Right to Buy reform.

“We will continue to call for the Government to give councils the powers to set local discount rates that reflect market conditions and temporarily pause Right to Buy if they face extreme local housing pressures. 

“We wholeheartedly support the Government’s pledge to bring about a council housing revolution but if we are to genuinely turn the tide and start restoring the supply of homes that our communities so desperately need, radical reforms together with dedicated funding are essential.”

Harry Rodd