While recent reforms of Right to Buy (RTB) led to a sharp increase in applications from people wanting to buy their council houses, local authorities in England see long-term benefits from them for boosting their stock of social housing, a new LGA survey has found.
The survey, delivered in partnership with the County Councils Network and District Councils’ Network, looked at the impact of changes made in 2024, including the reduction of discount levels, increased flexibility in the use of receipts, an increased cost-floor protection period, and removal of the acquisitions cap.
The survey found that 44 per cent of councils had already made use of the increase in the maximum permitted contribution to the development of new stock from RTB receipts; many called for the further extension of this flexibility beyond the 2025/26 financial year, to which the Government has committed.
However, while 23 per cent of respondents reported that new housing stock schemes had been unlocked or become viable because of recent reforms, 52 per cent reported that they have not been able to unlock any new schemes yet.
Respondents emphasised that budget constraints on the Housing Revenue Account (HRA) remained a barrier to the viability of new schemes.
The LGA is calling on the Government to remove the time limit on the use of Right to Buy receipts, and for councils to have the ability to set discounts locally.
Cllr Tom Hunt, Chair of the LGA’s Inclusive Growth Committee, said: “The Right to Buy reforms are a step in the right direction for councils as they seek greater control over their housing stock, but we urge government to go further to ensure that local government is fully empowered to deliver the homes we desperately need.”