The Chartered Institute of Housing (CIH) has published an
analysis of the impact of the extension of Right to Buy (RTB) to
housing associations and the sale of high value
Read the full report.
The report claims almost 7,000 council homes a year could be
lost when RTB is extended to housing associations in England if no
extra funding is provided.
The RTB policy was unveiled in the Conservative Party's
manifesto and was included in the government's new Housing
and Planning Bill published on Tuesday 13 October 2015.
The Bill also includes new legislation on the sale of vacant
high-value council homes - Ministers have previously said that the
cash generated would be used to replace both the housing
association and council homes sold and also to set up a new £1
billion brownfield regeneration fund (see notes to editors, 2).
However, analysis from The CIH shows that local authorities
could be left with no money to replace the homes they are forced to
sell to fund the policy.
The research indicates that:
- between 2,100 and 6,800 'high-value' council homes are likely
to become empty and be sold each year - compared to the
government's estimate of 15,000
- those sales would generate between £1.2 billion and £2.2
billion a year - compared to the government's estimate of £4.5
- around 1.45 million housing association tenants would be
eligible for right to buy during the first five years of the
policy, with around ten per cent (145,000) likely to take
- £1.2 billion would be around half the amount needed to
compensate housing associations for homes sold under the scheme -
housing associations would need almost all of the higher £2.2
billion estimate, leaving virtually nothing for councils to replace
the homes they have sold or for the brownfield regeneration
Read the full report.
The CIH said the government should consider other options to
close the RTB funding gap, for example by offering smaller
discounts than those currently proposed or increasing the
qualifying period from three to five years. The CIH has also echoed
call for full consultations on the details of the two measures
(the sale of high-value council homes and the sale of housing
association homes), how they will interact and their implications
for housing supply.