Plan B

We had 277 right to buy sales in 2006/07 and 188 in 2007/08. In early 2008 I was expecting 150 to 200 sales for the year ahead. Hindsight is a wonderful thing, but l really don’t think the sheer scale of the housing sales slump could have been predicted.

Currently, right to buy sales are around 40 for the whole financial year to date, and most of these sales were in the first six months of the year. We even went through a 12-week period recently where we only sold one council house. In 2006/07 we were selling five a week.

It is, of course, good news that the government is now making right to buy receipts for new homes 100 per cent usable. This will help us make the most of sales going forward.The fall in council house sales combined with the lack of interest commercially in land sales has impacted on the general capital programme this year and into the future. Wolverhampton Homes’ housing capital programme will reduce from £14.7 million to
£8.6 million next year.

The only consolation for us is that the construction downturn has increased competition for work and there is potentially the scope to do more now with the capital money we have. We are also focusing even more attention on value for money to maximise the amount that can be invested back into the stock.

It is about focusing on the real priorities and making sure we deliver what people really want. At least our decent homes programme runs to 2012, which will enable us to make the most of any upturn in right to buy sales either in 2010 or 2011. At the moment we are working through all the options to make sure we deliver on our decent homes promises.

Philip Toni is director of finance at arm’s-length management organisation Wolverhampton Homes

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