Laura Sharman 02 February 2018

Councils warn Right to Buy discounts have reached £3.5bn

Nearly £3.5bn in Right to Buy (RTB) discounts to council tenants over the past six years, new figures have revealed today.

The analysis by the Local Government Association (LGA) found the average discount has increased by 132% to more than £60,000 in 2016/17, with properties being sold at nearly half their worth.

Since 2012, councils have reported a 409% rise in RTB sales, resulting in nearly 58,000 council homes being sold under RTB in six years.

The LGA said councils have only been able to replace around a fifth of homes sold since 2011/12. It is calling for councils to be able to set RTB discounts locally and to keep 100% of sale receipts to replace homes.

Cllr Judith Blake, LGA Housing spokesperson, said: Councils support people’s aspiration to own their own home and Right to Buy is one way of doing this. However, selling council homes at a discount of nearly half price has led to a social housing fire sale that threatens the future of the scheme.

'The rate of homes sold under RTB combined with the restrictions on councils is making replacing homes sold virtually impossible.

‘This loss of social rented housing risks pushing more families into the private rented sector, driving up housing benefit spending and rents and exacerbating our homelessness crisis. This is particularly concerning as many of the homes sold through the scheme ended up being rented out privately at more expensive rates.’

SIGN UP
For your free daily news bulletin
Highways jobs

Graduate Trainee Electric Vehicle Infrastructure

North Yorkshire Council
£25,183 - £30,559
Could you help us deliver Electric Vehicle infrastructure to support this new transformation mode of transport. Greenwich, London (Greater)
Recuriter: North Yorkshire Council

Contracts and Strategy Officer

Royal Borough of Greenwich
£41,442 - £44,331
Royal Greenwich is on the up! Having achieved a 3.8% increase in our recycling rate this year Greenwich, London (Greater)
Recuriter: Royal Borough of Greenwich

Senior Developer

Royal Borough of Greenwich
£52,584 - £69,068
Royal Greenwich is a vibrant borough, with a rich history and diverse community. Greenwich, London (Greater)
Recuriter: Royal Borough of Greenwich

SEND Operations Assistant - 2 year FTC

Essex County Council
£25081 - £26679 per annum + + 26 Days Leave & Local Gov Pension
SEND Operations AssistantFixed Term, Full Time£25,081 to £26,679 Per AnnumLocation
Recuriter: Essex County Council

Welfare Benefits & Money Advice Caseworker

Sandwell Metropolitan Borough Council
Band E SCP 18-25 (£30,559 - £35,235 per annum
We have an exciting opportunity for a skilled individual to join our Welfare Rights Team Sandwell, West Midlands
Recuriter: Sandwell Metropolitan Borough Council
Linkedin Banner