Proposed Right to Buy changes could exclude more social housing tenants

Proposed changes to the Right to Buy policy could prevent more social housing tenants from purchasing their homes. These proposals suggest that tenants might face waiting periods exceeding a decade before they can buy, and individuals residing in newly constructed social housing could be permanently ineligible to buy. Additionally, the government aims to reduce Right to Buy discounts to their pre-2012 values and deter social tenants from reselling properties they have acquired. Housing Secretary Angela Rayner stated that these modifications intend to tackle the reduction in social housing availability. However, the Conservatives criticized Labour, asserting it is “limiting aspiration and social mobility”. Since the inception of the Right to Buy policy in 1980, there has been an almost consistent annual net decrease in social housing stock. This trend is attributed to successive governments’ inability to replace homes that were either purchased or demolished. According to an analysis by Shelter, the number of English households in social housing is 1.4 million lower now than it was in 1980. Rayner commented, “Too many social homes have been sold off before they can be replaced, which has directly contributed to the worst housing crisis in living memory.” She further added, “We cannot fix the crisis without addressing this issue – it’s like trying to fill a bath when the plug’s not in.” The housing department has put forward a proposal to extend the minimum residency period required for tenants in their social homes before they can purchase them, from the current three years. This period was shortened from five years to three years in 2014. However, the government is now soliciting opinions on whether to increase it to five years, 10 years, or beyond 10 years. The government is also contemplating a prohibition on tenants purchasing any newly constructed social housing. Presently, tenants are eligible to buy housing that is over three years old. Nevertheless, a proposal has been made to extend the period during which newly built social housing is exempt from purchase to a range of 10 to 30 years, or even “permanently”. Furthermore, there is an intention to decrease the maximum discounts available to tenants utilizing Right to Buy, setting them between £16,000 and £38,000, varying by council. This adjustment would revert discounts to their pre-2012 amounts. Existing regulations mandate that tenants must reimburse the discount to the council if they resell the property within five years of its purchase. The government aims to prolong this repayment period to 10 years. These measures follow previous announcements by the government in the Budget regarding other modifications to Right to Buy. These included permitting councils to allocate the entire proceeds from a Right to Buy sale towards acquiring or constructing new social housing, instead of only half. Support for Labour’s Right to Buy reforms is not universal. Shadow housing secretary Kevin Hollinrake criticized the government, stating it is “pulling up the drawbridge on home ownership and limiting aspiration and social mobility”. He further commented, “The Right to Buy has helped millions into home ownership. It has given something back to families who worked hard, paid their rent, and played by the rules.” Concurrently, Polly Neate, chief executive of Shelter, described Right to Buy reform as “vital… but not enough on its own”. She emphasized that the changes “must be combined with serious investment in social homes in the Spring Spending Review”. Rayner has prioritized social housing during her tenure in government, having previously informed the BBC of her desire to witness “the biggest wave of council housing in a generation and that is what I want to be measured on”. Certain individuals have pressed the government for more drastic action regarding Help to Buy, with Manchester mayor Andy Burnham advocating for its “suspension”, while others have proposed its complete abolition.