The Housing Forum has responded to the Government's consultation on the Right to Buy. The Right to Buy policy reduces the supply of affordable housing:
- When a home is sold it will never again become available for a new household in need of social housing. It will never be possible to replace the homes that are sold on a one for one, like for like basis, meaning that the Right to Buy causes a gradual erosion of the housing that is most directly available to relieve homelessness and housing need.
- The presence of the Right to Buy deters councils from building new homes. Many of our members are keen to build new council homes, but are forced to set up complex legal structures in order to avoid risking losing them – in some cases within months of the first let.
The Housing Forum’s view is therefore that the Right to Buy should be abolished. We are, however, supportive of the reforms proposed because they will slow the loss of social housing stock. We set out our proposals for reform in our paper Reforming the Right to Buy last year (https://lnkd.in/euNQmwFK), and are pleased to see that some of our suggestions have been picked up in the consultation document.
The main points we raise in the consultation response are:
- Eligibility criteria should be tightened so as to ensure that the scheme is used by its intended beneficiaries (longer term tenants who intend to remain living in the home and are capable of sustaining homeownership)
- Discounts should be reduced, to a maximum of 20%
- Councils should be given discretion to exclude properties from the scheme, such as those in particularly short supply locally.
- Newbuild housing, built after these changes are made should be permanently excluded.
- Councils should be free to use the receipts however they see fit, to replace the housing or invest in existing homes.
https://lnkd.in/e3nCCj-h