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ARCH responds to consultation on Right to Buy reform 24/01/2025

ARCH has responded jointly with the National Federation of ALMOs and the Councils with ALMOs Group to the Government's consultation on reforming the Right to Buy, which closed on 15 January.  Despite the fact that some members of all three organisations would wish to see the Right to Buy abolished altogether, the response accepts that the Government intends to retain and reform it. It accepts that council tenants who have rented a home in their local community, and perhaps adapted and improved it, should not be forced to move if they wish to become homeowners.  It also accepts that homes should be made available at a discount that reflects the rent buyers have paid as tenants, but argues that, for the scheme to be sustainable, the discount must not be so great as to compromise the ability of the council to replace sold homes as necessary to meet housing need.

 

The response argues that a maximum discount of 20% strikes the right balance between making purchase affordable and ensuring that the proceeds of sale are sufficient to fund a replacement home.  Tenants should become eligible to buy after 10 years tenancy, with a 10% discount increasing by 1% for each additional year up to the maximum of 20%.

 

Homes currently exempted from the Right to Buy should remain so, and some additional exemptions are proposed--most importantly--for newly constructed homes, which the response argues should be exempt from sale for 30 years after construction.

 

The response also argues the Government should consider placing conditions on the resale of homes sold under the Right to Buy, including requiring that the discount on first sale should continue to apply to future sales, and to prevent sale to buy-to-let landlords.

 

Councils should retain the full proceeds from Right to Buy sales, to be used as they decide with the minimum of centrally imposed restrictions.  There should be a broad presumption that sold homes should be replaced one-for-one, but councils should be able to determine the tenure, size and location of replacement homes in line with local housing need priorities.

 

Primary legislation is required to implement the Government's proposed reforms. Subject to the outcome of the consultation, the Government is expected to introduce an amending Bill in the next session of Parliament.

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