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.