London’s Right to Buy rule change is ‘a shot in the arm’ for council housing

London Councils has welcomed the new relaxation of restrictions on how local authorities in the capital can use the money raised through Right to Buy sales.  

The cross-party group says policy changes announced by the government will be a ‘shot in the arm’ for London boroughs’ work to boost supply of affordable housing and tackle the capital’s worsening homelessness crisis.

Announced this week, the government has told councils they can retain 100% of Right to Buy receipts for 2022/23 and 2023/24, which marks a change from the previous rules on how local authorities could use sale receipts as a lot of the money would go back to the Treasury rather than be available to purchase homeless accommodation for people in the community.

The government has also declared a two-year freeze on capping the number of existing homes councils can purchase using Right to Buy receipts which will help local authorities increase their social housing stock and provide homes for homeless residents, including households on housing waiting lists.

According to recent research, there have been around 300,000 council homes sold in the capital since the government introduced Right to Buy in 1980, yet London boroughs currently have 301,000 households on their waiting lists.

The latest research completed by the cross-party group shows homeless rates in the capital are increasing – London Councils estimates 166,000 Londoners – equivalent to the entire population of a city like Oxford – are homeless and living in temporary accommodation. The figure includes 81,000 children.

Cllr Darren Rodwell, London Councils’ Executive Member for Regeneration, Housing & Planning, said: ‘These new flexibilities will provide a shot in the arm for boroughs’ housing ambitions. We’ve long called for an end to all restrictions on how boroughs can use Right to Buy sales receipts. It is crucial that every penny raised from council house sales is available locally for replacing those homes.

‘In the face of London’s worsening homelessness crisis, boroughs urgently need more resources for securing the affordable housing our communities are crying out for. The capital’s housing pressures are the most severe in the country. This intervention is welcome, but we will continue to work with ministers to ensure boroughs get the long-term policy and funding support required for ending the homelessness crisis altogether.’

Image: David Monaghan