Council repurchases homes sold under Right to Buy scheme for housing expansion

Council repurchases homes sold under Right to Buy scheme for housing expansion

0:02 AM, 18th October 2023, About 7 months ago 14

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A London council is set to spend millions of pounds repurchasing 310 council homes that were sold off under the Right to Buy scheme.

Islington council reveals the programme is part of the council’s commitment to increasing the number of council-owned homes in the borough.

The council homes will be a mix of one, two, three and four-bedroom properties for individuals and families and is set to be the largest buy-back programme in the country.

Affordable place to call home

The additional properties will provide temporary accommodation for people who are experiencing homelessness, or who have had to leave Afghanistan or Ukraine. 

Councillor Una O’Halloran, executive member for homes and communities, said: “We want everyone in Islington to have a safe, decent and genuinely affordable place to call home.

“Every council home we buy back or build is another home where people can thrive. These homes will provide a secure base from which people who are experiencing homelessness or have had to flee conflict can start to rebuild their lives locally.

“They will mean more people benefit from good quality temporary accommodation in Islington when they need it most. I’m proud that we are leading the way with our buy-backs programme and also doing everything we can to increase the amount of council homes in the borough.”

Expansion of scheme

Under Right-to-Buy, council tenants are offered a discount to purchase their homes.

The council secured an additional £82m from the Department for Levelling Up, Housing and Communities (DLUHC) to expand the scheme and will add £85m of its own funding.

In total, it has secured £102m of funding from the DLUHC and the Greater London Authority to deliver its buyback programme.

In April this year, councils welcomed a policy shift by the government which grants councils the ability to keep 100% of funds from right to buy sales for two years, in an effort to boost housebuilding.

Local authorities will be able to keep all right to buy receipts from sales in 2022-23 and 2023-24 and will have five years to spend the money.


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Comments

Reluctant Landlord

9:18 AM, 18th October 2023, About 7 months ago

who are they buying then back from? Are these properties already empty or are they planning on evicting people to then house others???

Mick Roberts

10:15 AM, 18th October 2023, About 7 months ago

Reply to the comment left by Reluctant Landlord at 18/10/2023 - 09:18
I want Nottingham Council to come buy a load of mine if the promise to keep tenant in for 10+ years on same rent.

Jo Westlake

10:21 AM, 18th October 2023, About 7 months ago

Reply to the comment left by Mick Roberts at 18/10/2023 - 10:15
My Local Authority are welcome to buy back my ex Council flats as long as they guarantee not to evict the tenants. They've been hopeless at doing anything about moisture ingress (due to poor pointing and the wrong type of insulation) and I'm fed up with constantly chasing them to fulfill their duty as freeholder.

Robert M

10:50 AM, 18th October 2023, About 7 months ago

So Government money (taxpayer's money) is used to subsidise the building of the properties in the first place, then more taxpayers money is used to give the tenants a huge discount to buy the properties (over 50% discount in some cases), and now more taxpayers' money is being used to buy back those properties (presumably at market price, not the RTB discounted price). At every stage the taxpayers (such as private landlords and other workers) are paying for these properties rather than the Councils using the rental income alone (as private landlords have to do). - Then the likes of Shelter and Generation Rent wonder why private landlords have to charge a higher rent than councils charge!

The council has recently bought a property back from a private landlord whom I leased from, and although they could have continued leasing the property to us (so we could leave the four residents in situ), they insisted on vacant possession which meant 4 residents were made homeless at the insistence and demand of the council, (as they knew we had no other vacancies at the time, and they refused to rehouse our residents). - At the last minute we got one room vacancy so we managed to house one of the four, but the other three became street homeless due to the council actions.

The stupidity and wastefulness of government (regardless of the party in power) never ceases to amaze me!

Seething Landlord

11:01 AM, 18th October 2023, About 7 months ago

Reply to the comment left by Robert M at 18/10/2023 - 10:50
Exactly. They will not be increasing the supply of housing, just rearranging the deck chairs on the Titanic at vast public expense.

Concerned landlord

11:29 AM, 18th October 2023, About 7 months ago

Reply to the comment left by Robert M at 18/10/2023 - 10:50
Council's have to take vacant possession of properties, otherwise people with the financial resources would simply buy a property then give themselves or a family member a tenancy agreement and then sell the property back to the local authority, with them as a sitting tenant. This could mean someone essentially jumping straight to the top of the housing list, regardless of need or the suitability of the property to their circumstances. Although it may seem counter intuitive for council's to make people homeless it is to prevent systems that are in place to house those most in need being abused.

Anne Noon

12:03 PM, 18th October 2023, About 7 months ago

Reply to the comment left by Reluctant Landlord at 18/10/2023 - 09:18
My local Council asked if they could by-back my ex Council flat a few years ago, to house their tenants. I was interested, but they would not even negiotiate until I served a Section 21 notice on my tenants and had Vacant
Posession. SO no deal then.

Now they want to CPO the property as the buildings in the estate cannot meet current standards and they are going to knock them all down. It should have been concluded in July of this year, now they say May next year to come an agreement (they only have 7 Private Landlords to negotiate with!! Then I have to serve notice before anything can be concluded. So I have just served a Section 21 notice for them all - 2 are awkward tenants, one owing about 1400 now, so yet more losses whilst awaiting their valuation and additional payments package.

This could break me financially, as I had no idea it was coming until May 22 and had spent tens of thousands in HMO works requested by the Council and and modernising the property during the protracted HMO works and dealings with the Council. I reckon, even if I receive a decent package and be able to buy something else, I will still be £10 to £12000 down a year for the next 10 years of my life. It is like the Council has stolen my entire State Pension for the next 10 years. I will also not be able to get another mortgage ever as a result of the losses I have made over the past 2 years.

Anne Noon

12:10 PM, 18th October 2023, About 7 months ago

My local Council asked if they could by-back my ex Council flat a few years ago, to house their tenants. I was interested, but they would not even negotiate until I served a Section 21 notice on my tenants and had Vacant Possession. So no deal then.

Now they want to CPO the property as the buildings in the estate cannot meet current standards and they are going to knock them all down. It should have been concluded in July of this year, now they say May next year to come an agreement (they only have 7 Private Landlords to negotiate with!!) Then I have to serve notice before anything can be concluded. So I have just served a Section 21 notice for them all - 2 are awkward tenants, one owing about £14000 now, so yet more losses whilst awaiting their valuation and additional payments package.

This could break me financially, as I had no idea it was coming until May 22 and had spent tens of thousands in HMO works requested by the Council and and modernising the property during the protracted HMO works and dealings with the Council. I reckon, even if I receive a decent package and be able to buy something else, I will still be £10 to £12000 down a year for the next 10 years of my life. It is like the Council has stolen my entire State Pension for the next 10 years. I will also not be able to get another mortgage ever as a result of the losses I have made over the past 2 years.

Old Mrs Landlord

18:59 PM, 18th October 2023, About 7 months ago

Reply to the comment left by Anne Noon at 18/10/2023 - 12:10
I feel for you Anne, what an injustice. I hope they at least give you a fair compensation package to enable the purchase of another property.

Reluctant Landlord

20:53 PM, 18th October 2023, About 7 months ago

is it worth talking this over with the other 7 remaining? If they are also letting thier flats out then they must be in the same situation? What are they planning to do?
Perhaps you can form an alliance and respond to the Council regarding the CPO as 'one voice' or seek some initial legal advice as a group?

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