Right to Buy changes Backfire?
What is a happening to the Right to Buy scheme?
Following a short consultation, changes were made to the Right to Buy scheme in November 2024. The maximum discount offered to social housing tenants was reduced by over £78,000. Whilst the changes were designed to preserve social housing stock, the local authority received 10 times more applications in one month than ‘normal’ by potential buyer’s trying to save the higher discount.
Our Head of Property Mark Laird addressed the reason for the change and how it will affect the buying stock in Leeds.
What has changed?
Prior to the consultation, social housing tenants were entitled to a discount of up to £102,400 on buying their home. However, this is now £24,000 in the Yorkshire area. The changes were made by a government concerned that the scheme was reducing social housing and increasing the cost of housing vulnerable families. Since the introduction of the scheme in the 1980s, over 37,000 formal council homes have been sold. Fewer than 1 in 10 of the homes were replaced leading to a substantial reduction of available social housing.
How will it affect the housing demand?
Council tenants had until 20 November 2024 to apply to purchase their homes with the higher discount. Leeds City Council recently announced 2,500 were received. If all 2,500 properties are sold the Council will lose 4% of its social housing stock.
What next?
The government continues to consider further changes to the Right to Buy scheme. Further changes could include increase the amount of time a tenant has to live in a Council home before acquiring the Right to Buy and also increase the period after the purchase during which the discount must be repaid.
Residential Property & Conveyancing Team
At Morrish Solicitors each of our specialist property lawyers have decades of experience in assisting with purchases under the Right to Buy scheme.
To find our more about our residential property and conveyancing services please call us on 033 3344 9600 or email [email protected].
Author: Mark Laird, property.
