City Hall still hopeful of Right to Buy ringfence

At a Conservative Party conference fringe today, Richard Blakeway, London’s deputy mayor, signalled that the government is still open to a ringfence, calming fears that talks might have been sunk by the National Housing Federation (NHF) proposal.

Inside Housing revealed last month that the Greater London Authority (GLA) is offering to build 15,000 extra homes a year in exchange for retaining the cash from the sale of expensive empty council homes in the capital.

Under the deal, housing associations would agree to use the receipts to build replacement homes in London as opposed to outside the capital.

However, key housing figures have speculated that a London ringfence could be off the table, following an agreement by housing associations to voluntarily accept the Right to Buy.

Under the NHF proposal, housing associations would have flexibility over the location of homes built to replace properties sold under the Right to Buy.

Inside Housing research also suggests that the cash from the forced sale of council homes will need to flow out of London in order to pay for housing associations’ Right to Buy discounts.

However, Mr Blakeway told the fringe that “talks continue” between the GLA and the government about a London ringfence, suggesting a deal is still on the table.

He said: “I think the expectation, particularly around the voluntary settlement, will be that given the pressing housing challenges that continue in places like London and elsewhere, that settlement produces a tremendous boost to new housebuilding, particularly where the money raised is being re-invested into the places where it is needed the most.”

Inside Housing asked for clarification on when a deal would be struck, but Mr Blakeway refused to expand on any details of the potential deal.