Less than 2,000 homes were either started or acquired to replace the 12,304 homes sold by local authorities under the Right to Buy scheme in the last financial year, according to new figures released by the Department of Communities and Local Government (DCLG).
The new data covers April 2014 – March 2015 and shows that only around 15% of the homes sold have or are in the process of being replaced.
DCLG’s figures show that within the 12 month period, the first three months of 2015 saw the most sales under the Right to Buy scheme, which allows council house tenants to buy their homes at a discount. The 3,321 properties sold in this time was down by 2% from the same quarter a year before, but – sold at a value of £260.6m – represents a 7% increase in revenue for councils.
Since the scheme was reinvigorated in 2012, almost 30,000 properties have been sold by councils, with an additional number sold by Private Registered Providers, – making over £2bn in receipts. However, only 3,337 homes have been started or acquired in this period, meaning that only the homes sold in the 2012/13 period have been fully replaced. Under the scheme, local authorities have three years from the sale of each affordable home to replace the property.
However, the Government says it has other plans for the money gained through the Right to Buy scheme, including the creation of a £1 billion brownfield fund to get land ready to build on and make way for 400,000 new homes. There are also plans to deliver 200,000 starter homes that will also be sold at a discount to first time buyers under 40, and achieve the fastest rate of housing delivery for 20 years by creating £38bn of public and private investment in new housing.
Brandon Lewis, minister of state for housing and planning at DCLG, has claimed that the new figures serve as proof of the scheme ‘fulfilling the aspirations of hard-working people’.
Mr. Lewis also reinforced the Government’s commitment to extend the scheme to 1.3m housing association tenants. In a speech to the Chartered Institute of Housing in Manchester on June 25, the housing minister urged the organisations to seize the opportunity to help their tenants own their own home.
He said: “We want to help anyone who works hard and aspires to own their own home to turn their dream into a reality. The Right to Buy supports those dreams – it’s why we want to give housing association tenants the same home ownership opportunities as council tenants.
“I know these changes will be challenging for housing associations but I also know they care deeply about their tenants. That’s why I’m calling on them to support our vision and become the champions of aspiration.
“Only by working together can we make a real difference to the lives of hard-working people and keep the country building.”
To read DCLG’s latest report on the Right to Buy scheme, click here
