Three differently coloured front doors: red, light blue and dark blue.

The Right to Buy scheme (“RTB”) has allowed tenants of council housing to purchase their homes at discounted prices. Driven by the housing crisis, reform discussions have gained momentum with the scheme featuring in the new Government’s budget. Following the scheme being abolished in Scotland and Wales, here is what can be expected in England:

  1. Replacement Housing: It has been pledged that for every home sold, a replacement will be built. To aid this, local authorities will be able to use all of their retained receipts from sales, rather than returning a share to HM Treasury.
  2. Reduction of discounts: From 21 November 2024, the maximum discount was reduced to levels we last saw over a decade ago. The current uprating in line with CPI will no longer be available.
  3. Expansion of the Cost Floor: The duration Housing Associations, under the preserved RTB, can take into account certain costs (“the Cost Floor”) when calculating discounts is to increase for more recently acquired stock.
  4. Accountability: Controls will be introduced to encourage transparency with regards to stock levels of affordable housing and plans to construct and acquire more affordable homes.
  5. Suitable alternatives: Alternatives are being explored to replace the RTB which can provide permanently affordable housing (e.g. Community Land Trusts).

It is important that any reform balances increasing homeownership and developing and maintaining affordable housing supplies for those that need it. Any reform must limit the detrimental impact on housing stock given resources are already strained, making it challenging for local authorities and housing associations to invest in new developments and maintain their existing properties.

The debates about the RTB will always be contentious, given housing will remain a hot topic for politicians and any reform will influence voters in one way or another. Ultimately, any reform will need to be part of a broader housing strategy which addresses the diverse needs of our country, considering home ownership, affordable housing and homelessness prevention.

Please contact our Social Housing team if you require any further information or support.