You are viewing 1 of your 1 free articles
Homes built with government Growth Deal funding will be subject to the Right to Buy
Councils with Growth Deal funding from the government will be expected to make any affordable housing they build subject to the Right to Buy, including homes constructed through their privately owned companies.
The government has previously announced £12bn of Growth Deal funding between 2015/16 and 2020/21 for Local Enterprise Partnerships to put into new housing, the creation of jobs, and other local projects.
However, it has now emerged that any affordable housing built directly by councils will be subject to the Right to Buy, which has come as a shock to some senior council figures.
Mike Rowley, board member for housing at Oxford City Council, said: “We recently found out that the local Growth Deal grant money that affordable housing is built from has to have a Right to Buy tied in to that.”
READ MORE
The Oxfordshire Housing and Growth Deal is between the six local councils in the area and includes £60m for 1,320 affordable homes across a range of tenures to start on site by 2021. While five of the councils are delivering their affordable housing through housing associations, Oxford City Council plans to directly deliver its affordable homes.
Mr Rowley added: “We’ve received a significant amount of local Growth Deal funding, which is welcome because it enables us to provide more affordable housing on some of our sites… however [the Ministry of Housing, Communities and Local Government (MHCLG)] informed us a couple of months ago, not having previously given a hint of it, that they would have a requirement of a Right to Buy with any affordable housing built with that money.”
He said the council had not factored in the Right to Buy to their financial calculations.
An MHCLG spokesperson said: “Through Growth Deals we’re helping councils deliver the affordable housing this country needs.
“But we’re clear that the tenants who live in these homes are given the right to buy their home, just like other council housing tenants.”
A spokesperson for the Oxfordshire Growth Deal said: “All six Oxfordshire councils have approved the terms of the Oxfordshire Housing and Growth Deal, which includes £60m of government funding for affordable housing over the next three years. This will support an Oxfordshire-wide programme to enable delivery of at least 1,320 affordable homes across a range of tenures to start on site by 2021.
“What is key is that the funding will bring forward additional affordable housing units that would not otherwise have been achievable through other existing funding streams. In line with government policy the housing built will be subject to acquisition rights commensurate with that offered by different housing providers.”
