Think tank calls for crackdown on landlords profiting from Right to Buy

A left-wing think tank is calling for councils to be granted new powers to prevent landlords from profiting from Right to Buy.

As previously reported by Property118, think tank Common Wealth blames the Right to Buy scheme for worsening the housing crisis.

However, the think tank has now listed policy recommendations, including new powers for councils to stop landlords from buying up social housing.

Expanded Compulsory Purchase Order powers to buy out privately rented homes

Andy Burnham, Mayor of Greater Manchester, has previously called for expanded Compulsory Purchase Order (CPO) powers to buy out privately rented homes from landlords letting substandard properties, a move supported by Common Wealth, which says could boost the supply of social housing.

Common Wealth claims this would “allow local authorities to acquire homes for council housing at better value for the public, while improving the condition and quality of the housing stock overall.”

The New Economics Foundation (NEF) has also backed the proposal, arguing that “landlords should be prevented from selling properties on the market without evidence that the property meets regulatory and legal standards.”

NEF adds that: “Substandard properties are likely to be valued below market levels anyway, but this procedure would effectively reduce the price paid by the local authority further.”

Right to Buy Back scheme across England

The report also recommends introducing a Right to Buy Back scheme in England, similar to the one already in place in London.

In 2023, the Greater London Authority launched its “Right To Buy Back” scheme, which saw 1,500 homes acquired in the first year to be repurposed as council housing, many of which had been sold under Right to Buy.

The think tank says a Right to Buy Back scheme across the whole of England would help boost social housing.

The report says: “Over time, funding could be ramped up significantly as part of a wider strategy to restore council housing to pre-Right To Buy levels, and expand it in future, and clear social housing waiting lists.

“The Right To Buy Back scheme should be overseen by central government, which should allocate the grants to local authorities, with the criteria for accessing grants to be set by central government but delivered by local authorities, tailored to meet the local housing needs.”

Profit-generating assets for private landlords

Kwajo Tweneboa, social housing campaigner, told The Mirror these recommendations are essential to stop landlords from profiting from Right to Buy.

He said: “Homes that were once publicly owned are now profit-generating assets for private landlords. That’s the legacy of Right to Buy.

“Reversing that damage isn’t just a nice idea. It’s essential. This isn’t about nostalgia. It’s about giving people dignity, stability and a decent place to call home.”

Adam Peggs, report author and housing expert at Common Wealth, added to the Daily Mirror the government must tackle the housing crisis.

He said to the Daily Mirror: “Council housing gave people secure, low-cost homes in the past. With the right framework, it can give people high-quality, genuinely affordable homes, with real democratic voice in the future too. But we need to build the political will to make it happen.”

Housing Secretary Angela Rayner has previously hinted at abolishing the Right-to-Buy scheme altogether, despite personally profiting from it herself.

Ms Rayner sold her former council home in Stockport for a profit of £48,500 after purchasing it at a discounted rate through Right to Buy.