Profile incomplete
0:01 AM, 16th February 2024, About 3 months ago 20
Text Size
The Local Government Association (LGA) is urging the government to overhaul the Right to Buy (RTB) scheme which allows council tenants to purchase their homes at a discount, to address the acute shortage of social housing in the country.
The LGA, which represents councils across England, said the current scheme was leading to a net loss of much-needed social homes every year, as the number of properties sold far exceeded the number of replacements.
It says that the cost of discounts to help buy a council home since 2012 is £7.5 billion.
According to the latest figures, 10,896 homes were sold through RTB in 2022/23, while only 3,447 were replaced, resulting in a net loss of 7,449 social homes.
The LGA said this trend was unsustainable, especially at a time when more than one million people were on council housing waiting lists and councils were spending £1.74 billion annually on temporary accommodation.
Cllr Darren Rodwell, the LGA’s housing spokesperson, said: “We are facing a significant housing shortage in this country which has pushed council budgets to the brink as they struggle to find suitable homes for an ever-increasing number of people.
“Whilst the Right to Buy can and has delivered home ownership for many, the current form does not work for local authorities and many of those most in need of housing support are simply unable to access secure, safe social housing.
“It is time for the Government to overhaul the Right to Buy scheme and give councils the tools they need to build more social homes and tackle the housing crisis.”
In a new paper, the LGA called for major reforms to the RTB scheme to give councils more control, power and flexibility over how they use the money raised from the sales and how they deliver new homes.
The LGA proposes that councils should be able to:
The LGA also expressed concern over the rising discounts offered to tenants, which amounted to £7.5 billion since 2012.
The Government confirmed that the maximum discounts would increase in line with inflation to £102,400 outside London and £136,400 in London from April 2024.
The LGA said this would further prioritise one household’s home ownership over another’s access to secure, safe, social housing, and make it harder for councils to replace the sold properties.
The organisation also says the Government’s 2012 commitment to replace every home sold on a one-to-one basis nationally had not been met, with nearly 120,000 homes sold and only 44,000 replaced in that period.
The LGA blamed the restrictions around the use of RTB receipts, which prevented councils from covering the full costs of building new homes.
It also estimates that a further 100,000 homes would be sold by 2030, with only 43,000 replaced.
Previous Article
Allow tax relief for landlords who improve EPC ratings says firmNext Article
Fleet Mortgages unveils new look and website
Reluctant Landlord
10:54 AM, 16th February 2024, About 3 months ago
council tenants have a right to buy. (though I'd like to see just how many did so in the last 5 years)
The issue is that councils don't rebuild using the proceeds. They dont have to ringfence it. Major mistake.
Even if the cost of building new can't reproduce the same sized property, there is no excuse for them not to use the money to build something smaller or even of a different structure - prefabs?
They could update or repurposing empty council buildings of their own (raising council tax in the process) or even by from auctions - it's what the PRS does!
Trouble is they are not interested. They don't really want to be landlords ultimately. They can't control the standards in the properties they have under their responsibility as it is.... Instead its easier to keep going cap in hand to the government for additional money and bailouts and blame it all on someone else....
Anything is better than throwing it down the drain on securing temp housing accomodation....
Simon M
13:49 PM, 16th February 2024, About 3 months ago
Council housing is a false market. Council rent is subsidised - and leaves councils without enough money to manage their properties, a cycle of failure.
Tenants who buy lose their right to council housing and less of a drain on benefits. They need an income and spend some of that money looking after their property. The difference is clear when you walk down a street with a mix of ownership.
GlanACC
17:01 PM, 16th February 2024, About 2 months ago
I have already offered all of my 6 tenants 10 months rent back if they buy the property, I have even offered to give them a loan to pay for conveyancing. No one was interested - I won't evict them whilst they pay the rent so guess the properties are going to my grandaughter !
dismayed landlord
17:25 PM, 16th February 2024, About 2 months ago
Reply to the comment left by GlanACC at 16/02/2024 - 17:01
Have you therefore made inheritance plans?
GlanACC
18:43 PM, 16th February 2024, About 2 months ago
Reply to the comment left by dismayed landlord at 16/02/2024 - 17:25
Yes, I am in the process of changing the share structure of my LTD company (4 properties) - thats happening right now. My other 2 properties are in a partnership with the wife and I am leaving them alone. I also have another business which I am 're-arranging' as well (properties are not my main business but do have the most assets in them). I plan to leave my grandaughter my big pension pot as that escapes inheritance tax.
Judith Wordsworth
19:31 PM, 16th February 2024, About 2 months ago
Personally I think no tenant should have ever been given the right to buy their Council rented property.
And to be able to keep for 3 years then sell at market price without having re repay the discount was a stupid mistake.
Opens the door to Labour bringing in right to buy a tenants PRS property, and at a discount! Who is going to pay the landlord back the discount?
Lisa008
14:08 PM, 17th February 2024, About 2 months ago
I've never understood 'RTB'. It's an unfair advantage being given to a group. The 'assets' (the housing) is public property. It belongs to the tax paying public. No-one should be selling off the crown jewels. Because now look at the state of the place?! No reinvestment. They complain about nowhere to house people... but whose fault is that??!!
I don't think the government really want to be social landlords. They can't keep up with their ridiculously high standards... but they should spear-head a house building campaign. I have often wondered, why don't the government train people (get them off benefits), train them up in house building skills... and then at least you'd be paying people and receiving some public service/benefit in return. All people seem to do is sit on their arse with their hand out. And I'm not talking about people with serious illnesses etc., I see too many able-bodied, work shy people ... the government needs to get these hands to work.
Why is it that when I used to go to Spain there was always some development, rubble, building works going on??!! Everytime! I don't (genuinely) understand it. And then because everyone is in 1-person 'families' now... all individuals... the solution is more HMOs so that everyone can just rent a room and that's it... but they make even being in a house share to share costs 'difficult'... so what are people supposed to do? Struggle to get a 1 bed flat that they can't afford? Live on a friends sofa? I don't get it.
No-one is solution orientated. All very short term thinking... and pushing the can down the road. The tories are fully expecting this to be a Labour problem. There is no incentive for Tories to house people... and so they don't. Their voters already have a house ... several of them.
Is this just too simplistic thinking? No political will to solve anything. It's ridiculous. We need good people to stand up and campaign for human rights, instead of allowing career politicans, public schoolboy idiots to give their mates contracts and laugh at the rest of us plebs.
L G
15:38 PM, 17th February 2024, About 2 months ago
Reply to the comment left by GlanACC at 16/02/2024 - 17:01
On what basis would you offer your tenants 10 months' rent back for buying the house? Why not simply sell to another landlord and/or offer the tenants first refusal without losing thousands of pounds?
GlanACC
15:47 PM, 17th February 2024, About 2 months ago
Remember that a lot of landlords got started through RTB, either they were in the properrt and bought it cheap or they bought it from someone who had purchased through RTB. I even know of landlords lending the council tenant the money for RTB on the understanding they would be sold the property at below market rate after the council tenant had taken a cut.
GlanACC
16:00 PM, 17th February 2024, About 2 months ago
Reply to the comment left by L G at 17/02/2024 - 15:38
Because they are long term tenants (I have one who has been in the property > 20 years). and not all landlords are grasping for every penny. I don't need the money and I am mortgage free, so I am happy to spend money on decorating and repairs (all tax deductable) - so as long as the tenants pay the rent I have guaranteed they can stay in the property (even after I have pegged it). It will likely be my grandaughter whe inherits the properties. However I would encourage the tenants to buy the property, so why not give them a discount - the discount is only equivalent to estate agent fees etc.