You are viewing 1 of your 1 free articles
Five years ago, Inside Housing’s front page splashed on the news of an extension of the Right to Buy to housing associations. Kate Youde finds out what happened next
This story was originally published on 2.9.2021. We are republishing it today due to reports that the government is considering returning to the plans to extend the Right to Buy to housing associations.
What story are we talking about this month?
Five years ago, Inside Housing led with news on how the extension of the Right to Buy to English housing associations was taking shape, with housing associations concerned about government plans to pay only 70% of the compensation owed on the sale and withhold the remainder until a replacement home was started.
Take-up at five associations participating in a pilot was lower than anticipated: the National Housing Federation revealed that only 1.6% of households – equivalent to 790 – had applied to buy their social home. MPs had expected a figure of 20%.
So, what happened next?
Another pilot. After the first one closed in October 2016, then-chancellor Philip Hammond announced a regional pilot, which would enable more than 3,000 tenants to buy their home.
However, it was not until August 2018 that this scheme launched in the Midlands, with the aim of testing the one-for-one replacement of homes bought and the portable discounts housing associations must offer tenants to buy another property if they refuse to sell the tenants’ their own home.
And how did that pilot go?
According to an evaluation published in February 2021, 1,892 homes were sold – or in the final stages of completion – by the end of April last year. The pilot involved 44 landlords. The report noted tenants’ frustration with the process and the “many challenges faced by housing associations in building replacement homes, including land availability and funding”. No figures had been collected for replacements.
While 69% of applicants took the opportunity to purchase their own home, only 12% of the tenants offered a portable discount to purchase another property did so.
What is happening now?
Not much. The Conservatives had promised in their 2019 election manifesto to keep the Right to Buy extension and “evaluate new pilot areas”, however no further details have been forthcoming.
The stumbling block might be money: there is no agreed funding to cover the discounts offered on homes. Analysis by Inside Housing of figures from the evaluation of the Midlands pilot concluded that the extension of the Right to Buy to housing associations would cost the taxpayer close to £2.1bn in the first year alone.
So it’s a case of watch this space?
Yes. In March, Labour MP Justin Madders asked about the planned timescale for the national roll-out. Housing minister Christopher Pincher said the government was “committed to evaluate new pilot areas, and further details will be provided shortly”. Five months on, the sector is still awaiting answers.
Already have an account? Click here to manage your newsletters