You are viewing 1 of your 1 free articles
Right to Buy replacements hit highest level since discounts were hiked
The number of homes built or acquired to replace those lost through Right to Buy sales has hit its highest point since the scheme was reinvigorated in 2012.
Government figures released today show that in the final quarter of 2020/21, councils in England delivered 2,060 homes using Right to Buy receipts, compared to 340 in the final quarter of 2012/13.
This is the highest quarterly figure since 2012 when the government revived the Right to Buy scheme with significantly bigger discounts in a bid to increase sales.
It is also up 23% on the 1,674 Right to Buy replacement starts or acquisitions made by councils between October and December 2020, with numbers much lower in the first half of 2020 amid the COVID-19 pandemic.
January to March 2021 was only the second quarter since 2012 in which replacements have outstripped sales.
READ MORE
A total of 2,021 homes were sold via the Right to Buy between January and March 2021, which is the lowest final quarter figure since 2012/13.
The total amount of Right to Buy receipts in the quarter was £186.6m, which is also the lowest since 2012/13.
When the government hiked the discounts for Right to Buy in 2012 it promised each home sold as a result of the discounts would be replaced.
To calculate this, it uses an estimated figure for sales had the discounts not increased.
The latest data shows that 36,380 additional extra homes have been started or acquired using Right to Buy receipts since 2012, falling 9,728 short of the replacement target of 46,108.
The data comes in the same week that the mayor of London, Sadiq Khan, announced he will provide boroughs with funding to purchase council homes lost under the Right to Buy over the past 40 years.
A further 817 replacement homes on top of the 2,060 were delivered by Homes England and the Greater London Authority (GLA) using money obtained through Right to Buy sales but not spent by councils within the five-year deadline.
Prior to April this year, councils were given three years from the date of a sale of one of its homes to use the money to deliver a replacement property.
Under changes that were initially brought in in response to the pandemic, councils now have five years to provide a replacement.
If a council does not provide a replacement within this time, a proportion of the receipt is transferred to Homes England or the GLA to build additional affordable homes.
Sign up for our Council Focus newsletter
Already have an account? Click here to manage your newsletters
