LGA Warns: Right to Buy Scheme Threatens Social Housing Supply
The Local Government Association (LGA) has raised concerns about the Right to Buy (RTB) Scheme in England. David Renard, the LGA's Housing Spokesperson, has warned that rising RTB discounts are prioritising homeownership over access to social security.
By the end of the decade, social security in England is projected to lose another 57,000 homes due to the RTB Scheme. This is because RTB discounts are set to increase by 10.1% next month, making it challenging for councils to deliver replacements. It is estimated that 100,000 homes could be sold through RTB by 2030, with only 43,000 replacements planned.
The LGA is calling for councils to be granted the power to set RTB discounts locally and retain 100% of sales receipts. Currently, there are no records of any local authorities in England applying for permission to do so in their monthly budgets. Additionally, councils are seeking the ability to transfer RTB funding to housing companies for greater flexibility in delivering new council housing. The LGA also proposes that councils should be able to combine RTB receipts with government grant funding for affordable housing.
The LGA's proposals aim to give councils more control and flexibility in managing the RTB Scheme, enabling them to better maintain and increase the supply of social security in England.
