Consultation outcome

Use of receipts from Right to Buy sales

• From: Ministry of Housing, Communities & Local Government (2018 to 2021)
• Published: 14 August 2018
• Last updated: 19 March 2021 — See all updates

This was published under the 2016 to 2019 May Conservative government

Applies to England

This consultation has concluded

Read the full outcome

Use of receipts from Right to Buy sales: Government response to the consultation

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Detail of outcome

This document provides a summary of responses to the consultation on the use of receipts from Right to Buy sales. It also sets out the changes the government is making in response to this consultation.

The changes being made include:

• Extending the timeframe local authorities have to spend new and existing Right to Buy receipts from 3 years to 5 years. This will make it easier for local authorities to undertake longer-term planning, including remediation of larger plots of land
• Increasing the percentage cost of a new home that local authorities can fund using Right to Buy receipts from 30% to 40%. This will make it easier for authorities to fund replacement homes using Right to Buy receipts, as well as making it easier to build homes for social rent
• Introducing a cap on the use of Right to Buy receipts for acquisitions to help drive new supply with effect from 1 April 2022, and phased in over 2022-23 to 2024-25
• Allowing receipts to be used for shared ownership and First Homes, as well as housing at affordable and social rent, to help local authorities build the types of home most needed in their communities.

These changes take effect from 1 April 2021, with the exception of the acquisition cap, which will be introduced from 1 April 2022, on a phased basis.

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Original consultation

Summary

We are seeking views on ways to reform rules on using Right to Buy receipts from sold council homes, and on reforming the national one-for-one replacement commitment.

This consultation ran from
9am on 14 August 2018 to 11:45pm on 9 October 2018

Consultation description

The government wants to support local authorities to build more affordable homes. This consultation invites views on options to change the rules governing the money raised from Right to Buy sales to make it easier for councils to build more homes.

It also seeks views on whether the commitment that every additional home sold (as a result of the increase in discounts in 2012) is replaced on a one-for-one basis nationally should be retained, or reformed to focus on the wider supply of social and affordable housing.

It is being published alongside the social housing green paper

We are keen to hear from local authorities as well as residents and other stakeholders.

Documents

Use of receipts from Right to Buy sales

Ref: ISBN 978-1-4098-5298-8

PDF, 401 KB, 23 pages

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Published 14 August 2018
Last updated 19 March 2021 + show all updates

1. 19 March 2021

   Added consultation response.

2. 14 August 2018

   First published.