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ARCH annual report

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The ARCH annual report for 2015-16 is now available to view.

 

Download it here.

Right to Buy Social Mobility Fund Prospectus 04/03/2015

ARCH Briefing 2/2015

 

Issued by:

DCLG

 

Issue date:

20 February 2015

 

Key proposals

Invites bids for funding by 18 March from councils wishing to operate local schemes to provide tenants eligible for the Right to Buy with a cash incentive to purchase a property on the open market.

 

Schemes are expected to prioritise:

 

  • Older tenants seeking to move into more appropriate accommodation
  • Working age tenants moving to improve job opportunities
  • Tenants of properties that are not attractive to mortgage lenders.

 

Background

Some tenants eligible for the Right to Buy are prevented from buying the property in which they live because it is unsuitable for their needs or difficult to mortgage. The Government is providing funding of £84 million in 2015/16 and 2016/17 to support cash payments to help such tenants to buy on the open market.

 

Key points

Councils are invited to bid for a share of the funding available. They may submit bids jointly with other stock-owning councils or with housing associations with tenants who have the preserved Right to Buy. Successful bids will be awarded a share of the fund, based on the proposal submitted. Funding will be provided only for the payments to tenants, not for the costs of administering schemes. Any overspend in operating a scheme will have to be funded locally.

 

Bids will be evaluated primarily on the extent to which they are focused on the priority groups of tenants identified above. Some consideration will also be given to the extent to which schemes enable councils to make better use of their stock.

 

ARCH Comment

The maximum cash incentive is small compared with the maximum discount available under Right to Buy - £20,000 compared with £77,000, or, in London, £30,000 compared with £102,700. There will remain a significant incentive for some tenants to buy with the intention of subsequently re-selling to buy another property, even if they have to repay a proportion of the discount.

 

The funding available will provide for a relatively modest number of tenants to be helped under this scheme - probably no more than 2,000 unless councils choose to top up schemes from local resources.

 

Link to Prospectus

 

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