Right to Buy reforms drive sales surge and housing optimism

Data from the Local Government Association (LGA) shows Right to Buy adjustments increased sales and boosted optimism for social housing.

Last year the government introduced upgrades to the Right to Buy scheme in a bid to encourage eligible tenants to purchase their home and provide councils with more control over their housing strategies.

Among the adjustments included lowering discount levels, axing the acquisitions cap and offering a longer cost floor protection period – the period a landlord can count the costs of building or improving a property when calculating the purchase price for a right-to-buy application.

New research from the LGA – published this morning – shows, that as a result of these changes, there has been a surge in Right to Buy applications, and many councils feel more positive about their ability to invest in new and existing housing stock.

Conducted in the form of a survey, the research revealed 527 Right to Buy applications were submitted per council in 2024/25. What’s more, two thirds were lodged in the three weeks after last year’s autumn budget was announced and before discount reductions took effect.

Likewise, 48% of respondents reported increased optimism about council housebuilding and just under a quarter said new projects have become viable since the reforms became available.

However, 52% of councils noted budget constraints, especially within housing revenue accounts, continue to block new schemes.

Cllr Tom Hunt, chair of the LGA’s inclusive growth committee, said the reforms are a positive step for councils to maintain and grow housing stock but called on the government to remove restrictions on Right to Buy receipts and allow councils to set discounts locally.

Cllr Hunt added: ‘The Right to Buy reforms are a step in the right direction for councils as they seek greater control over their housing stock, but we urge government to go further to ensure that the local government is fully empowered to deliver the homes we desperately need.’

Photo by Benjamin Elliott via UnSplash 

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