Reforms in Right to Buy scheme boost property sales and instill housing confidence
The UK government's recent upgrades to the Right to Buy scheme have sparked a surge in applications and increased optimism among councils for council housebuilding, according to new research from the Local Government Association (LGA).
The research reveals that 48% of respondents reported increased optimism about council housebuilding, and just under a quarter said new projects have become viable since the reforms became available. However, despite this optimism, 52% of councils noted budget constraints, particularly within housing revenue accounts, continue to block new schemes.
Cllr Tom Hunt, chair of the LGA's inclusive growth committee, supports the Right to Buy reforms as a positive step for councils to manage their housing stock. He urges the government to take further actions to empower local government in delivering needed homes. Specifically, Cllr Hunt calls on the government to remove restrictions on Right to Buy receipts and allow councils to set discounts locally.
Among the adjustments made to the Right to Buy scheme were lowering discount levels, axing the acquisitions cap, and offering a longer cost floor protection period. These changes aim to provide councils with more control over their housing strategies and encourage eligible tenants to purchase their homes.
The surge in Right to Buy applications is evident, with 527 applications submitted per council in 2024/25. Two thirds of these applications were lodged in the three weeks after last year's autumn budget was announced and before discount reductions took effect.
Meanwhile, a developer has won an appeal to build 115 new homes in Yaxley, and the Scottish council is seeking private homes for social housing. These developments demonstrate the ongoing efforts to address the housing crisis in the UK.
The Right to Buy program was first introduced in the UK in 1980 to promote the sale and optimism for social housing. The government's recent reforms are intended to build on this foundation, fostering a more sustainable and equitable housing market for all.
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