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Scottish council offers reverse Right to Buy scheme as part of major repairs pilot
A Scottish council has offered to buy back homes sold under the Right to Buy as it embarks on a £30m pilot scheme to carry out repairs within mixed-tenure blocks.
Edinburgh Council is piloting a project attempting to tackle the issue of how to carry out major repair works on buildings that have become mixed tenure after former council tenants purchased their homes under the Right to Buy.
The council has set out plans to carry out improvement works, including the installation of external wall insulation, on 1,400 homes in the Wester Hailes area of the city at an estimated total cost of £30m over three years.
This cost will be shared between the council and private owners, with the council offering to pay for the works up front and invoicing the private owners for their share upon completion.
Because of the Right to Buy, 403 (29%) of the homes are now privately owned, while the average estimated cost of repairs will be 25% of the value of properties in the pilot area.
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In order to support private owners with the cost of the repairs work, the council has introduced a buyback scheme that will allow owner-occupiers to remain in the property as a council tenant with a secure tenancy.
Alternatively, owner-occupiers will be given the option to pay back the money owed over an extended period of 10 years and the council said it is also helping owners to access grant schemes to help pay for the energy efficiency work that is planned.
Under Scottish law, a majority of owners within a block must vote in favour of repairs being carried out for works to go ahead.
This is different to the English system, whereby leasehold law means these decisions can often be taken by the building’s freeholder.
Edinburgh Council said that the legacy of the Right to Buy, which was abolished in Scotland in 2016, has meant that more than half of its homes are now in mixed-tenure blocks, making it harder to carry out repairs work for its tenants due to the high costs for private owners.
It has chosen Wester Hailes for the pilot as it said many blocks are need of repair and the roofs have not been renewed since the blocks were built in the 1960s, meaning many are beyond end of life.
Kate Campbell, housing, homelessness and fair work convener at Edinburgh Council, said: “This is a hugely challenging project but one that needs to be done in order to improve the living conditions for all residents living in these properties – our tenants, owner-occupiers and those who rent from private landlords – so they feel more safe, secure, warm and proud of the neighbourhood they live in.
“Serious investment needs to be made now with many of the blocks falling into serious states of disrepair and as a social landlord we have a responsibility to meet housing quality standards and energy efficiency standards.
“We will continue to work closely with other owners in the blocks to give professional guidance on what needs to be repaired due to wear and tear or that structurally needs to be replaced now to prevent any issues and more costly repairs arising in the future.
“And everyone will benefit. Once the works are complete, homes will be better insulated, which will mean warmer homes – helping all residents reduce their energy bills. We hope to instil collective pride within blocks with tenants and owners feeling safer and more secure with roof and wall rendering works carried out – extending the life, aesthetics and potential value of the properties and improving the quality of life for those that.”
