Right to Buy scheme demolishes almost 60,000 social housing properties

Social housing in England is estimated to lose a further 57,000 homes by the end of the decade due to the Right to Buy Scheme (RTB), new analysis by local government leaders shows.

A new report by Savills, commissioned by the Local Government Association (LGA), estimates that 100,000 homes are likely to be sold through the RTB by the end of 2030, whilst only 43,000 are set to be replaced.

Under RTB, council tenants are offered a discount to purchase their homes. The size of the discounts were increased in 2012 under a relaunch of the scheme, to a maximum of £87,200 across England and £116,200 in London.

RTB discounts are set to increase by a further 10.1% next month, in line with September’s inflation figure. The LGA has warned this will make it harder for councils to deliver replacements, due to a lack of money from RTB sales.

As a result of this, the LGA is calling on the government to use this month’s budget to allow councils to set discounts locally and retain 100% of sales receipts.

Local authorities also need to be granted the ability to combine RTB receipts with government grant funding, such as the Affordable Homes Programme – set to run from 2021-2026 it has three policy goals including, increased access to secure decent homes for households who cannot otherwise afford to buy or rent a home at market prices.

In addition, councils are also looking to be able to transfer funding from sales to housing companies to provide them with ‘greater flexibility’ over how new council housing is delivered.

David Renard, a Housing Spokesperson for the LGA, said: ‘Councils want to urgently help people on council housing waiting lists and stuck in temporary accommodation.

‘It is becoming impossible for councils to replace homes as quickly as they’re being sold, as they are being left with nowhere near enough money to provide replacements.

‘Rising ETB discounts mean that one household’s homeownership is increasingly being prioritised over another’s access to secure, safe, social housing.’

Photo by Ruben Hanssen