"It is concerning that there is an apparent emerging chasm between the number of Right to Buy sales and the number of housing starts by local authorities"
However concerns remain over the number of housing starts by local authorities. In 2015/16 there were 12,246 Right to Buy sales but only 2,055 starts and acquisitions by local authorities.
Between April and June, despite the 3,362 sales, there were just 422 dwellings starts and acquisitions, although this is still a 37% rise on the same quarter a year earlier.
In 2016-17 Q1 local authorities received approximately £282.9 million from Right to Buy sales.
Any Right to Buy sales above Treasury projections are considered ‘additional’ and are subject to the one-for-one additions policy, which is a commitment to provide an affordable dwelling for each additional Right to Buy dwelling sold.
Under the Right to Buy one-for-one additions policy local authorities have three years from the date of the sale of each additional home to provide an additional affordable property. If a local authority does not provide an additional affordable property, a proportion of the receipt is transferred to the Homes and Communities Agency or Greater London authority, who use these recycled Right to Buy receipts to deliver starts and acquisitions.
The government's data shows that the HCA and GLA have used recycled Right to Buy receipts from local authorities to deliver a total of 1,287 starts and acquisitions between 2012-13 Q1 and 2016-17 Q1. Adding these 1,287 to the 5,731 delivered by local authorities gives 7,018 in total.
DCLG data shows that as there were 4,389 additional sales between 2012-13 Q1 and 2013-14 Q1, it has therefore exceeded the target for one-for-one additions.
Richard Connolly, CEO of Rentplus, commented: “The significant annual increase in the number of Right to Buy sales by local authorities shows that many people have been assisted in achieving their dream of home ownership, but in the UK there is a severe lack of affordable housing, and it is important that models which allow people to migrate to home ownership are sustainable. It is concerning that there is an apparent emerging chasm between the number of Right to Buy sales and the number of housing starts by local authorities; for example in 2015/16 there were 12,246 Right to Buy sales but only 2,055 starts and acquisitions by local authorities.
“Part of the solution to the issue of housing supply in the UK should be Rent to Buy models which allow tenants to rent their property at an affordable level, with the option to buy later. Working with local authorities this can be underpinned by a best endeavours agreement to ensure each home sold is replaced on a one-for-one basis. This ensures that levels of affordable housing in a local area remain at the levels required to house people on a range of incomes, allowing them to provide consistency for their families and make social and economic contributions to their communities.”
